Does the IRS ever give you a break on back tax's. I'm talking about forgiving part of them for an individual like they do for big business's. If anyone knows an answer to this, please reply.
2006-09-15 06:43:00 · 4 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
Sure. It's called an "Offer in Compromise".
However, the Bush Administration last year changed the law so you have to pay 20% with your offer, and you don't get it back if they don't grant the OIC.
And OICs are not readily granted. Bankruptcy used to be an alternative for many people with older tax debts. Until the Bush Administraitons's castration of the bankruptcy law, making it inaccessible to many (formerly) middle class people because their earnings or debts are greater than average.
So, the rich with their 15% rate on capital gains and their trust funds do better than the poor. But, as the French say, both are free to sleep under bridges.
2006-09-15 06:46:49 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes, the IRS does forgive some penalities and interest under certain circumstances. They have a form you can file for this purpose. (An Offer in Compromise). Just call them and they will explain everything. They won't bite, actually they are quite helpful. Do it now before the new law takes effect and you'll be dealing with a private collection agency who's tender mercies won't be so nice.
2006-09-15 06:51:21 · answer #2 · answered by Brite Tiger 6 · 0⤊ 0⤋
you can make deals with the IRS to pay back debt but make sure you have the cash available before you start.
2006-09-15 06:50:31 · answer #3 · answered by Michelle 4 · 0⤊ 0⤋
ROTFLMAO!!!
2006-09-15 06:46:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋