An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. When submitting an OIC it is very important that all details, requirements and format for submittal are met to increase the chance of acceptance by the IRS.
The IRS will collect tax monies due by any means necessary. They may take all your assets with a levy or garnish up to 70% of your wages. A wage levy will force your employer to turn over some portion (in some cases three-fourths) of your wages to the IRS. A tax lien against your property will make it very difficult to sell your home or to refinance it. The IRS can seize other assets as well.
Facing an IRS tax audit alone can be frightening and confusing. With so many potentially damaging penalties on the line, you need a tax audit attorney who knows the system and how to protect you against financial penalties and possible jail time.
Some taxpayers believe that not filing a tax return is better than filing one without, having the money to pay. This belief couldn’t be farther from the truth. If you file a tax return and can’t afford to pay what you owe, the IRS will work with you. But if you fail to file a tax return, the IRS can file for you.
When it is most advantageous for you, we can negotiate a reasonable payment plan with the taxing authority.If it is determined that you can pay any of your tax debt but not in full, we can work to negotiate a reasonable payment plan for you. The taxing authority will delay collection and enforcement actions as long as you are in compliance with this plan.
When the taxpayer cannot afford to pay the IRS monies due to a lack of assets and low income or no income (recently laid off due to current economy) then the IRS will deem the taxpayer Currently Not Collectible and agree that their tax liability will be waived for the time being and the IRS may temporarily delay collection until your financial condition improves.