When you owe more to tax agencies than you can pay off, settling a tax debt with an Offer in Compromise sounds like a dream come true. Who wouldn’t want the IRS or state tax agencies to agree to reduce their debt? It’s no surprise that every day we speak with people who are hoping for just that.
But is such a thing really possible? Do you qualify? Well, most people don’t qualify, and it may not be the right solution for every tax problem. However, we’ve seen for ourselves that it is possible.
Some Examples
This Offer in Compromise acceptance letter reduced this client’s tax debt from $36,855 to $50! As you can see, once that $50 is paid the client won’t have to worry about liens or any other IRS collection activities.
It isn’t just the IRS who accepts Offers in Compromise. Some states do as well.
This client owed $12,428 in tax debt to the state of New York. We were able to reduce his tax debt to $500!
This client owed the state of New York over $96,000 for a business he’d closed. We were able to reduce that tax debt to $10,000!
This client owed $93,500 to the state of Virginia for back sales tax for a closed business. We were able to reduce it to $500!
As you can see, those Offer in Compromise success stories aren’t fairy tales. However, not everyone qualifies for them. You have to prove that there is no chance you would be able to pay the full tax debt before it expires. Doing so means exposing all your finances with the Offer in Compromise form, and that can lead to an even worse situation than simply owing a tax debt.
If you’re interested in settling your tax debt with an Offer in Compromise, it’s best to speak with a tax expert to ensure that it’s an option for you. Having a licensed tax professional do the legwork will prevent your situation from worsening with the IRS or state tax agencies.
What if the tax expert says you don’t qualify? Don’t worry! There are alternatives that may be a better solution for your particular situation. A professional will let you know what your options are and navigate the process for you.
Do you want to know if an Offer in Compromise can settle your tax debt? We can help! Justice Tax, LLC specializes in resolving taxpayer’s tax issues, including IRS and state levies, garnishments, unfiled tax returns, and more. By calling us at 888-545-6007, we can provide you with a completely free, no-obligation consultation to go over your tax concerns with you and help you achieve freedom from your tax situation.
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