I owe almost 10,000.00 to I.R.S. because I worked for some body and they did not take out taxes. its mostly all intrest and late fees. now I cant even get a loan because of the lien they put on me.
2006-07-26 23:51:56 · 4 answers · asked by joseph6902000 2 in Politics & Government ➔ Government
An offer in compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances. A tax debt can be legally compromised for one of the following reasons:
* Doubt as to Liability - Doubt exists that the assessed tax is correct.
* Doubt as to Collectibility - Doubt exists that you could ever pay the full amount of tax owed.
* Effective Tax Administration - There is no doubt the tax is correct, and no doubt that the amount owed could be collected, but an exceptional circumstance exists that allows the IRS to consider a taxpayer's OIC. To be eligible for a compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.
Taxpayers should beware of promoters' claims that tax debts can be settled for "pennies on the dollar" through the Offer in Compromise Program. Check the OIC requirements to see if an offer in compromise is right for you .
Can also check these links..
http://www.anti-irs.com/irs_compromise.htm
http://www.ireducetax.com/taxproblems_003.htm
http://taxes.about.com/od/offerincompromise/a/form_656_offer.htm
2006-07-26 23:56:29 · answer #1 · answered by Sarath M 3 · 2⤊ 0⤋
Get a tax lawyer to negotiate a settlement for you. You can probably get rid of most of the late fees, fines and the lien. You will still owe that which you should have paid, and the longer you let it go, the worse it will get. Those fines and penalties and interest add up VERY fast.
2006-07-27 06:56:47 · answer #2 · answered by 34th B.G. - USAAF 7 · 0⤊ 0⤋
In CA there are a lot of tax pro's that claim to get penny on the dollar settlements. Try the legal section of the page and try thr inet for the legal ads.
2006-07-27 06:58:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
lawyer! settle for pennies on the dollar
2006-07-27 06:56:08 · answer #4 · answered by john p 3 · 0⤊ 0⤋