If you believe what you hear on commercials and see online, you can settle tax debts for pennies on the dollar. We get asked by many new clients if this is true. If so, what is this magical IRS program that can settle tax debts for so low?
The good news is what you’re hearing about does exist. It’s called an Offer in Compromise and it allows you to settle tax debts with the IRS for less than what you owe. We do have clients who have qualified for this program and have settled their tax debt for low, even very low, amounts.
The bad news is not everyone is eligible. If your tax debt isn’t very old or if the IRS does not think paying your debt in a monthly payment plan would cause financial hardship, you probably won’t qualify. An Offer in Compromise is an option we look at whenever a client wants to settle tax debts. The difference in us and our competitors is that we look at your situation realistically. We don’t want to give you false hope or make guarantees on IRS decisions.
At Kansas City Tax Mediation, we take a different approach. An Offer in Compromise isn’t your only option to settle tax debts with the IRS. In fact, there are 12 possible solutions. We do what we call an Optimum Resolutions Analysis to examine your individual situation, figure out which of the 12 solutions are available to you, and give you the pros and cons of each one. It is ultimately your decision how you’d like to proceed, but we can get through this together.