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Use the Offer In Compromise option to settle your outstanding tax debt

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    If you owe for several years of back taxes, there is some good news for you. If you have not already been made aware, there is an IRS program called Offer In Compromise. It is a program that will allow for you to make a tax settlement with the government for substantially less than you owe, if you can prove that you are financially or otherwise unable to pay back your debt in full in a reasonable amount of time.

    If that scenario does apply to you, check out the IRS Offer In Compromise Pre-Qualifier here. If it seems that you do qualify for the debt settlement program, make sure and read thoroughly through the Offer In Compromise IRS page and follow the instructions step by step. It's not terribly difficult, once you get all the info read. But for whatever reason, if you feel the process too daunting, you can hire a tax professional to help you.

    Just be aware that hiring a pro to file an Offer In Compromise on your behalf is much more expensive than just getting them to file a regular return. Expect to be charged in the neighborhood of $500-800.

    Even though this is a great option to settle outstanding tax debt, also be aware that it can be an arduous and long, drawn out process. And you might not get approved either. But if you are staring at a mountain of debt to the government and are out of options, this is a great starting point. And it really could end up saving you thousands! Remember that the IRS wants to settle debts MORE than they necessarily want to get the accounts always paid in full. As hard as that may be to believe, it is true; they have told me over the phone as much. Hope this helps someone out there.
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    Thanks for the info. I also found myself in a bit of a pickle last year and I was allowed to go on a payment plan. Either way, it seems like the IRS is willing to work with you if you are willing to work with them.