Discussion in 'Credit Talk' started by spyguyjim, May 17, 2000.

  1. spyguyjim

    spyguyjim Guest

    I realize this board focuses on credit card issues, however, I imagine many people here faced with mounting debt problems have found themselves owing back taxes as well.

    I am hacking away at some old tax debt and I was curious if anyone here had ever engaged in settlement negotiations with the government. Is this an option for recent tax debt? Any suggestions? Websites?
  2. Barry N -

    Barry N - Guest

    How recent are you talking?

    Depending on your financial situation/amount owed, you may certainly qualify for an "Offer & Compromise" settlement. A well connected tax attorney can help you get the best terms. If you can't afford an attorney look in the yellow pages for a referral service, and explain you are seeking sliding scale fee or pro bono firm. They are out there.

    Good Luck,

  3. spyguyjim

    spyguyjim Guest

    Need to file for the last three tax years. I'm paying large payments on a 1996 fed tax bill too. So, the total should end up in the $10,000 range after penaties/interest. I make enough to pay the entire balance off within 1.5 years. But, it would be nice to get it off my back sooner.

    Will they take an offer and then allow payments on the settlement amount, or want the entire settlement up front?
  4. JB

    JB Well-Known Member

    I do not believe that the IRS would even bother considering a compromise offer on $10,000. While it is still alot of money, it is manageable and nothing compared to the kind of debt their appeals officers see on a routine basis. I know from experience when I tried appealing my tax penalties.
  5. JP

    JP Guest

    Ouch, I know that they will setup monthly payment arrangements for amounts under 10K at 9% APR, but you miss a payment and they garnish. I don't think they will accept a settlement if your able to pay.


Share This Page