Has anyone ever had tax debt settled for pennies on the dollar?

Answer 1

It is sometimes possible to erase your tax debt at an enormouse discount with an offer in compromise. The IRS does not publicize this program for obvious reasons, as there have been cases to where somone has reduced their debt to around 5% (including debt and penalties.) In order to proceed with an offer in compromise, one of the following must be true:
1. There is some kind of doubt as to whether the IRS can collect their debt from you.
2. There is some doubt as to whether or not you owe the bil.

The IRS accepts 1 out of 4 offers in compromise, so if you seriously want to reduce your debt and get your offer accepted; you should seek the help of a tax specialist.

I do know one case where a woman in WA state had her IRS debt reduced from $20k+ to less than $1k. There were errors on her past returns and a tax specialist was able to refile past years tax returns to reduce the debt. It was pretty amazing to have your life turned around so quickly!

Answer 2

I have heard the commercials, but if you call them, and find out how much they charge, you may as well pay the IRS.
There is a form you can download from www.irs.gov
I think it is form 433F, fill it out and then call the IRS. They will do a workup on the numbers you supply and possibly adjust the amount you owe. If you can prove that there is no way possible to pay the debt, they may eliminate it all together.
I have also heard (rumor) that if you are in business for yourself, they will not adjust it.
Dealing with the IRS is a pain. I spoke to a woman, gave her the financial information and she came up with numbers I have never heard of. They contacted me and said they wanted two thousand a month. There is no way I can do that, so I am waiting for someone from the IRS to get back with me.
I wish us both luck......

Answer 3

what do you mean, pennies and dollars are completely different systems of currency. Expand and I might be able to answer