Is there anyway to pay off the irs in one lump sum and not pay the full amount owed?

Answer 1

In certain circumstances it may be possible to settle for less than the outstanding debt via a process called Offer in Compromise. The rules are complex and only a small portion of applications are ever approved. It basically must be impossible for you to reasonably be able to ever pay the debt or there must be a strong argument as to doubtful liability.

Here's a link to the basic Form 656 package: http://www.irs.gov/pub/irs-pdf/f656.pdf along with Form 656-A, Income Certification: http://www.irs.gov/pub/irs-pdf/f656a.pdf and Form 656-L, Doubt as to Liability: http://www.irs.gov/pub/irs-pdf/f656l.pdf and a link to some FAQs on the subject and the new rules: http://www.irs.gov/newsroom/article/0,,id=160042,00.html

Answer 2

You pay the IRS what they say you owe, and not a penny less. You cannot get a discount for paying all you owe - you will pay a very high rate of interest plus penalties the later you pay.

Answer 3

I think you need to clarify your question. IT makes no sense.

Pay off the IRS in one lump sum, but NOT pay the the IRS off? Which one is it?

Answer 4

You can't have your cake and eat it, too, you know. You're talking about an agency that garnishes wages and makes people sell off their property and leaves them with one car and their homestead in order to collect debts owed.