Tax Debt Reduced – Mr. S came to us as a referral from another client who was pleased with our service. After a consultation call, he came in to meet with one of our tax experts. His situation is very common in our line of business. He is a self-employed man who works from home. However, recent hardships made it difficult for him to pay the bills. To compensate, he had not paid 3 years’ worth of income taxes and owed the IRS about $73,000.
Our tax experts immediately began preparing his past unfiled tax returns. Once the tax returns had been filed, Mr. S still owed the IRS a significant amount of money. However, our team was able to determine that he was a good candidate for an Offer in Compromise (OIC). After 4 months of negotiating with the IRS, Mr. S wound up having to pay only $1000, approximately 1.5 % of the original amount he owed!
Although an Offer in Compromise is a fantastic way to dig oneself out of tax debt, it has very specific requirements. Talk with a qualified tax professional to see if you qualify. If you don’t, there are other ways to escape the bottomless pit of tax debt. An alternative tax settlement option we often seek is an Installment Agreement. We have had many successful cases of where an Installment Agreement has helped our clients pay off their tax debts.
