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Do You Owe Money to the IRS That You Cannot Afford to Pay?

If the answer to that question is yes, then you may want to explore an Offer in Compromise with the IRS. An Offer in Compromise is an agreement with the IRS that will allow you to settle your tax debt for an agreed upon amount that is less than what you actually owe. This may be a good option for you if you are unable to pay your full tax liability owed due to financial hardship or if paying the full amount owed will create a financial hardship. The four circumstances the IRS will review when considering this offer are your ability to pay, income, expenses, and assets. The IRS may accept the offer if the amount proposed is the maximum they will collect in a reasonable time frame.

The IRS Pre-Qualifier tool can be found at http://irs.treasury.gov/oic_pre_qualifier/. Please consult your personal tax advisor on all the above information.

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