IRS debt question

[sudofdisk]

What is the name of your state (only U.S. law)? Colorado

Hi, I owe about 28k in back taxes for the last three years (I have not filed yet, long story but not important). I have good income and am expecting a windfall in the coming months so I have the ability to pay, but not all at once so I am anticipating an installment agreement with the IRS once I "come clean".

I see and hear commercials that say "Do you owe over $10,000 to the IRS? Then call us and we can get that reduced!" I am wondering if much reduction is likely in my case, and if it is worth my time to hire an advocate. I am guessing (but I don't know, hence my inquiring here) that most of that reduction is the reduction of penalties or fines. While I understand I will have some penalties on my debt the 28k is plain taxes owed, so I don't know if the IRS will be willing to settle.

Thanks in advance for your time.

 

[HomeGuru]

What is the name of your state (only U.S. law)? Colorado

Hi, I owe about 28k in back taxes for the last three years (I have not filed yet, long story but not important). I have good income and am expecting a windfall in the coming months so I have the ability to pay, but not all at once so I am anticipating an installment agreement with the IRS once I "come clean".

I see and hear commercials that say "Do you owe over $10,000 to the IRS? Then call us and we can get that reduced!" I am wondering if much reduction is likely in my case, and if it is worth my time to hire an advocate. I am guessing (but I don't know, hence my inquiring here) that most of that reduction is the reduction of penalties or fines. While I understand I will have some penalties on my debt the 28k is plain taxes owed, so I don't know if the IRS will be willing to settle.

Thanks in advance for your time.

**A: first step is to get your taxes filed.The IRS is not even going to talk to you without you being current on your returns. Even those companies that advertise on tv will tell you the same thing. Check with a local tax attorney that specilizes in IRS representation.

 

[davew128]

Somewhere between slim and none.

 

[tranquility]

Without the facts, no one can know for sure. But, someone with a good income and with a windfall coming is not going to get a reduction in an amount validly owed.

 

[swalsh411]

When the IRS considers an offer-in-compromise it generally falls into one of two categories which are "doubts as to liability" and "doubts as to collectability". If there is no legitimate tax issue with how much you owe, then the first category would not be applicable. If you have a steady income (especially one they can garnish if needed) and can afford to pay, then the second category would not apply either. So in your case I would say your chances to get the tax reduced are NOT good unless you can raise a genuine issue in regards to why you think you owe less tax then indicated on your return.

 

[davew128]

Which brings us back to slim and none. No further explanation is required.

 

[sudofdisk]

When the IRS considers an offer-in-compromise it generally falls into one of two categories which are "doubts as to liability" and "doubts as to collectability". If there is no legitimate tax issue with how much you owe, then the first category would not be applicable. If you have a steady income (especially one they can garnish if needed) and can afford to pay, then the second category would not apply either. So in your case I would say your chances to get the tax reduced are NOT good unless you can raise a genuine issue in regards to why you think you owe less tax then indicated on your return.

Thank you for this informative response.