The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
Often it is possible to fully and completely eliminate the taxes you owe - including all penalties and interest - at an enormous discount. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done "right."
If done correctly your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
The thing to remember is not to wait too long to try and settle the taxes you owe to the IRS. The longer you wait, the more penalties and interest will accrue. The IRS needs to find out from the taxpayer their intentions of paying the debt. Remember filing bankruptcy does not relieve you from paying your past due taxes, it will just delay it. You ultimately will have to pay it whether in installments, Offer In Compromise (OIC) or pay it in its entirety. If the IRS does not hear from you they can place a lien on your properties, sell your properties, garnish your wages or freeze your bank accounts if any to get the taxes paid. You need to consult with us with regards to the above action to stop the IRS from enforcing any action detrimental to your postiion. With a signed Power of Attorney we will iniitiate contact with the IRS and submit proper forms needed. We will discuss this with you in detail to give you an understanding of the action we will undertake. We will need documentation from you that is required.
