Can my tax debt be settled for ‘pennies on the dollar’?

On October 25, 2004, the IRS issued a consumer alert advising taxpayers to beware of anyone claiming settlement of tax debts for ‘pennies on the dollar’ through what is called the Offer in Compromise Program (now called the ‘fresh start’ program by sales people).

Because most Offers in Compromise are filed by companies who make outrageous promises, more than 90% of all Offers in Compromise filed in the U.S. are rejected by the IRS.

Reality: It is possible that your tax debt can be settled for less than what you owe. Sometimes the settlement is dramatically less. The IRS has set very strict guidelines for the Offer in Compromise Program. To determine whether you qualify for an Offer in Compromise, I must review and evaluate the specific facts of your personal case and your financial circumstances. This is why I offer a free consultation so we can meet face to face and discuss the nature of your specific problem. Then I will be in a better position to tell you what options are available to you.

Many companies will try to convince you that they can settle your taxes for pennies on the dollar. The truth is, no one can make this claim unless they have reviewed your personal circumstances and determined that you qualify.  Companies rarely qualify for an offer in compromise without going out of business.