If you meet certain criteria, such as doubt as to liability or doubt as to collectibility, you may want to propose an offer in compromise to the IRS on Form 656. This is a negotiated settlement between you and the IRS. Here, the IRS may agree to accept a lesser figure from you in full satisfaction of your tax debt. If you owe $20,000 in taxes, you might, for example, be able to settle for $5,000. However, there's no guarantee that the IRS will accept your offer. There's also generally a lot of paperwork to submit, including various IRS forms, financial statements, pay stubs, and bank records. And, there's generally a non-refundable up-front application fee of $186, and a non-refundable initial payment requirement (both the application fee and the initial payment are waived for individuals who meet certain income requirements).
If you feel overwhelmed by the amount of your tax bill, though, and if you meet the criteria, an offer in compromise may be a good solution. It's important to note, however, that the IRS won't accept an offer if the IRS believes that the liability can be paid in full or through an installment agreement.
The information published on Continental National Bank website is true and accurate to the best knowledge of the bank at the time of publishing; Continental National Bank cannot be held liable for any actions that are carried out on the basis of that information, and the bank cannot guarantee the accuracy of all the information published. The information and views published on the website are subject to change without notice. Continental National Bank is not responsible for any third party content published on the website. The information published on Continental National Bank website does not in any way constitute advice to customers of any kind; ex. to buy or sell any particular financial instrument, tax advice; and users of the website are solely responsible for any investment decisions and or decisions of any kind, that they may make on the basis of the information published on the website. Continental National Bank cannot be held liable for any damage that may be suffered as a result of the information published on the website or any damage that may be directly or indirectly caused by the use of the website. In addition, Continental National Bank shall not be held liable for any damage arising from an inability to access the website for longer or shorter periods of time. Information offered through INFINEX INVESTMENTS, INC. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.