Owe Fed Taxes - would like to settle for smaller amount. Not sure if we can - do it on our own or use one of these companies I see advertised (settle for pennies on the dollar). Any info/advice would be appreciated!
2007-02-20 05:45:35 · 1 answers · asked by Suzanne 3 in Business & Finance ➔ Taxes ➔ United States
We do owe over $10k. Actually it's closer to $30k. We have $19k that we can pay so I was wondering if they'd settle for that or let us make payments on the remaining balance. Thoughts?
2007-02-27 09:21:20 · update #1
Do not call those companies!! They will charge you $4000-$5000 for their services and they don't do much for you.
As far as settling with the IRS:
If you owe over $10,000, you may qualify for an "Offer In Compromise" where the IRS accepts less than you owe based on your assets and future earning power.
If you owe under $10,000, don't even bother. The IRS will most likely reject the offer. You should enter in to an installment agreement.
Keep in mind, Offers in Compromise are for people that truly can not pay what they owe. Either they have no assets or no future earning power. Offers in Compromise are not for people that don't want to pay. This is probably why the IRS rejects over 85% of offers.
2007-02-20 06:10:59 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋