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It’s possible that a taxpayer could make settlement proposals to the IRS and “plead their case” that they could not otherwise pay the debt by making an “Offer-in-Compromise”. In a position paper dated May 27, 2005, the American Association of Attorney-Certified Public Accounts revealed that “(Offers-In-Compromise) acceptance rate has dropped from 39.8% to 22.9% from 2001 to 2004, while the number of accepted offers declined from 38,643 to 19,546, a decline of over 50% in just three years.” A blockade put up by the IRS like on November 1, 2003, the IRS began charging a $150 processing fee for most Offer-In-Compromise proposals. Also, in February of 2004, they officially issued “a consumer alert advising taxpayers to beware of promoters’ claims that tax debts can be settled for “pennies on the dollar” through the Offer in Compromise Program.” It seems that “frivolous” proposals – not to mention plenty of complaints by consumers than they had been getting ripped off…had been mounting enough to warrant concern by the IRS. It’s still possible to settle for less than you owe with the IRS. An Offer-In-Compromise is one of two methods that make this possible. However, the IRS has shown by its recent history that 84%-85% of Offers-In-Compromise will be rejected. I refuse to “sugar-coat” this fact – and I would highly encourage you to be wary of anyone who makes it sound “easy” to settle with the IRS. It’s not my job to “sell” you on a particular method of getting out of debt with the IRS. But I do want to help you understand that you do have options – real options that can help you get out of this IRS mess and get on with your life. If and Offer-In-Compromise is the right choice for you, we can help determine that. However, if it’s not, there are other ways. The Partial Payment Installment Agreement option is also a way that a taxpayer may be able to negotiate with the IRS to pay less than the full debt owed.
