i owe irs two years worth of back taxes.there are sites on line that claim they can settle debt for less.?

Question

can they really do it or should i just deal with a payment plan with the irs?

Answer 1

don't waste your money paying them. Save it to pay the irs. The sites will charge you lots of money, and probably if they are able to save you anything (which I doubt) their bill will be more than the savings.

Answer 2

Yes they can really do that IF you qualify. As an Enrolled agent, I represent taxpayers in doing this professionally but at less than half the cost of the services that advertise on TV. You can try to put the paperwork together on your own but I'd be happy to take your case if you have one there is no way to determine if you have one from your post.

The process is called offer in compromise and you have to offer an amount that IRS is satisfied represents the reasonable collection potential of the account.

If you have equity in assets or the ability to pay the liability in full over a reasonable period of time or can borrow the money commercially, you had better plan on doing just that.

An installment agreement will involve paying a processing fee but if you sign on before a levy is threatened, the penalty for late payment is reduced from 1/2% per month to 1/4%. If you owe less than $10,000 (roughly estimate your payment by dividing the balance due by 30) and can pay within 3 years, you can have one automatically. If you owe less than $25,000 and can pay in 5 years(roughly estimate your payment by dividing the balance due by 50), an agreement is pretty much automatic.

Answer 3

I recently filed tax returns for a client who had an estimate from one of those TV/Online folks at something like $8,000. My company charged $622. If you really owe the money the best bet is to deal directly with the IRS.

Answer 4

Be very skeptical of those offering to settle your tax bill. Check out IRS.gov. Search for "Offer in Compromise". The irs will settle tax bills for less, but in less than 2% of all cases. You can fill out the paperwork yourself, and have has much luck as someone offering it online. If you have no hardships, then the IRS will not settle.

Answer 5

Amnety for tax evasion is over. The IRS is no longer cutting deals to clean up the books.

The IRS will set up a payment plan for you and stop tacking on fees while you are paying.

Answer 6

There are qualified Individuals out there who can help you resolve your tax issues. It is however a nasty industry and there are many scams. If your situation is one that would benefit from competent representation I suggest that you thoroughly research any professional you are considering hiring. Also make sure you question the person you speak with. I have alot of information on how to choose a tax professional wisely on my website here : http://www.etaxrelief.com/choosing_a_tax_professional

Best of Luck to you.

Christopher R. Jacquez, EA
President eTaxrelief.com

Answer 7

actually there are places, but the IRS may very well settle for a lump sum amount also.. go to the website of the irs and read...

Answer 8

There are sites online that claim a lot of things. Unless you want to get scammed, stay away from them.

If you owe tens of thousands of dollars, you might do well to consult a local CPA or enrolled agent.

Answer 9

IRS doesn't make deals with outfits like those.

Why should they? Unless you file for bankruptcy, their calim is at the head of the list and they can seize your bank accounts and wages.

set up the payment plan.

Answer 10

There are tax consolidation services like you mention.

If you want to learn how you can LEGALLY reduce your tax burden (this applies to all forms of taxation at all levels of government) you’ll know where to find me.