Settle or pay your taxes back for a fraction of what you owe: Not everything that is said on the radio or television is true! Yes, there is a clear and great possibility that your tax debt can be greatly reduced, in order to free you once and for all from the Internal Revenue Service.
The truth is that the IRS has a program that allows taxpayers to settle their tax debts for less than the amount they owe. The formal name of this tax debt settlement program is the IRS Offer in Compromise.
Despite the news that reports that the OIC is a common and reasonable solution for many people, the reality is that few qualify for this program. In fact, while more than 16 million people and 3 million businesses owe the IRS, only 25,000 paid off their tax debts using OIC last year.
The reasons are multiple: from the IRS perspective, most taxpayers can pay their taxes with their resources or their current assets or over time through a payment plan. So those taxpayers would not qualify for an OIC. Each year, most taxpayers who owe the Internal Revenue Service request a monthly payment plan to pay their overdue taxes.
The Offers in Compromise program or better known as OIC is aimed at a small segment of taxpayers: They are those taxpayers who, due to their economic situation, will never be able to pay all their debt with their income or future assets before the IRS can bind people they must pay their total debt before the time limit to collect them expires. Generally, it is 10 years from the date of the tax that was assessed.
This year of 2019 it is very important that taxpayers understand their IRS payment options, including Offers in Compromise. The IRS projects that 3 to 4 million new taxpayers (in addition to the 30 million who already have a balance due) must be taxed due to the reform of the tax law. Each situation is different and each taxpayer has the necessary resources to pay their taxes. Keep in mind that if it is impossible for you to pay your accumulated tax debt with the IRS, you could submit an offer.