Can you settle tax debt? It does not seem possible. Why would the IRS accept less than what is owed?
The IRS will settle tax debt and accept less than owe. You must qualify.
The IRS has a program called Offer in Compromise. An individual can submit an Offer in Compromise to settle tax debt for less. There are three different types of Offer in Compromise.
3 Ways to Settle Tax Debt
1) Doubt as to Collectability
2) Doubt as to Liability
3) Effective Tax Administration
We examine each Offer in Compromise types. The Offer in Compromise chosen depends on your specific situation. Click Here to read more about the different Offer in Compromise types and how to settle tax debt for less.
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.