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Yes, there unquestionably is. This is not just the stuff of urban legend. It presents itself over and over through the use of a method that the feared Internal Revenue Service, themselves, has instituted to aid neglectful people settle back taxes. The program is known as an "Offer in Compromise", or more succinctly an "OIC". The IRS has been known to take as little as one (yes that's right, the digit "1") per cent of an total payable on a tax allegation and call it even and done!
These OIC's are completely up to the government's discretion, because there is no legal right to have a legitimate tax balance discounted by the IRS. That being said, the IRS must give a accurately submitted Offer balanced attention.
Look at the case of Henry who was living on a fixed income and found himself in default to the IRS for the sum of $13000. That's because a back tax bill can grow at a fast pace with all the additional fees, penalties and interest that they append to it. These things take on a life of their own after a while. Henry did the smart thing and enlisted the help of a settlement services advisor to represent his case to the IRS. The settlement services advisor negotiated a huge reduction from the full amount of $13000, getting it whittled down to a workable $2000! This was an amount that Henry could afford to repay and get back to his life without the IRS hounding him.
If this OIC option is starting to sound like it could be the way for you, keep in mind that merely wanting to work a deal with the IRS is not sufficient of a criteria. After all, wouldn't everyman like to have his or her tax bill scaled down? You first have to qualify for an Offer in Compromise by showing the IRS that one of these conditions exist:
What the IRS calls "Doubt as to Collectiblity". Plainly put there is some qualm as to whether they can receive payment of the debt from you.
"Doubt as to Liability". There is some prudent doubt as to whether you owe the tax bill at all. This one is highly unusual.
Lastly, due to some extenuating circumstances, the payment of the full amount would cause you an economic hardship or would be unfair or inequitable.
The end result here is if you think you might qualify for one of these tantalizing reductions in your overdue tax debt, you should try to find professional help in making the determination, and if a good case exists, employ them to act for you before the IRS. This is not something you want to do on your own. The adage from the legal profession " he who acts as his own attorney has a fool for a client" would also hold good in going before the Internal Revenue Service with an Offer in Compromise.
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