Are you indebted to the IRS for back taxes?  Have you seen offers on television offering assistance for those who are experiencing financial hardship due to back unpaid taxes and the associated fees and penalties incurred due to non-payment?  There is help, and one of the places tax payers like to consider least of all, is with the IRS itself.

You can visit the numerous tax help websites  and find answers to nearly any income tax issue you may be experiencing and negotiating with the IRS to consider an Offer in Compromise may be just the answer you have been looking for concerning payment of current or back taxes owed to the federal government.  Let’s face it, everyone, including the IRS needs to bring in more money now-a-days.  It’s tough all over, throughout the entire economic scale.

Exactly what is an Offer In Compromise?
An offer in compromise, sometimes referred to as an (OIC), is essentially an agreement between a taxpayer and the Internal Revenue Service. The Internal Revenue Service agrees with the taxpayer and settles the taxpayer’s tax liabilities for less than the full amount owed. That probably doesn’t sound too bad now does it? It is a little more complex than that. Individual circumstances must prove to the IRS that your tax liability cannot be paid either by a lump sum or through a payment plan. There are tax relief firms and companies that claim to be able to sell your IRS debt for pennies on the dollar. You should be aware of these types of companies. There are essentially three circumstances in which the IRS will accept an offer in compromise. They are as follow.

Doubt as to Collectibility – this applies when there is documented proof of doubt of collectibility, meaning in effect that doubt prevails that the taxpayer could ever pay the full amount of tax liability.

Doubt as to Liability, in some cases there is legitimate doubt that the assessed tax lab ability is correct. This could come through bookkeeping errors with the taxpayer has new evidence that provides circumstances that cast doubt as to the liability of the tax.

Effective Tax Administration – the prevailing circumstances or that there is no doubt that the tax is correct. The taxpayer has the resources to pay the amount in full. However the Internal Revenue Service may allow for an exceptional circumstance and may consider an offer in compromise. Eligibility for this type of compromise is limited to those who demonstrate to the collection of the tax would create an economic hardship or may be considered unfair or inequitable.
To help determine if you qualify for an offer in compromise check with the Form 656-B, Offer in Compromise Booklet  provided by the IRS.