Oleg Ikhelson, Esq., CPA
55 Madison Ave, Suite #400
Morristown, NJ 07960
2001 Route 46 East, Suite #310
Parsippany, NJ 07054
Fax (973) 206-7147
IRS TAX PROBLEM HELP: OFFER IN COMPROMISE
When you do owe additional money to IRS but can not currently pay, the federal government has set up a process that is designed to help you get a break and offer to the IRS what you actually can pay in lieu of what you really owe. If you owe taxes for the current year or for prior years and you cannot pay the full amount all at once, you can seek several forms of tax relief. You can arrange with the IRS for an installment agreement or you could negotiate an OFFER IN COMPROMISE to pay a total lower amount.
The Offer in Compromise is known as "Pennies on the Dollar" because in some cases a taxpayer makes an offer to the IRS to settle a back tax liability for much less then the full amount, sometimes literally a penny for each dollar. There have been cases when a taxpayer offered and the IRS accepted $100 to pay off the entire debt of tens of thousands of dollars.
However, it is important to understand that not everybody will qualify for the extremely favorable settlement as described above. Unfortunately, some tax relief advertisers in their commercials fail to deliver the truth.
Still, even if the IRS does not accept the taxpayer's argument that there is an indefinite "doubt as to collectability" (the term used by the IRS to concede and accept a nominal amount), there is other statutory relief available for taxpayers facing huge tax bills. It ranges from a temporary hold on collection actions to a more long-term "non-collectible" status that in a lot of cases results in eventual abatement of the whole tax liability.
If you would like to discuss the Offer in Compromise program, please contact Tax Relief Lawyer Oleg Ikhelson, Esq.