Is it easy to negotiate a deal with the IRS to accept "pennies on the dollar" and have the rest of your tax bill forgiven? Yes- it is possible, but it is NOT very likely. The Offer in Compromise used to be the only legitimate way to negotiate an actual lowering of the amount of taxes owed to the IRS by a taxpayer . . sometimes, far less. However, since the IRS has seen so much "abuse" of this particular method of tax relief in recent years, they have shown by their actions that they are less and less apt to accept and Offer in Compromise.
The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the
full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code
section 7122).
In a press release dated October 2004, the IRS stated "This program serves an important purpose. but we do warn taxpayers to watch out for unscrupulous promoters charging excessive fees to taxpayers who have no chance of meeting the program's requirements," said IRS Commissioner Mark W Everson. "Taxpayers should not be duped by high priced promises."
As of 2006, the IRS now rejects 85% of all Offers in Compromise. During the last 5 years, we have filed just one and it was accepted.
We encourage you to contact us and let us review your case. We can give you a good idea whether you have a possibility of success. If you do we will be happy to assist you through the process and deal with the IRS.
