Many have found tax debt relief with the help of accounting and legal experts, savvy to the IRS collections methods and have worked out what is called an offer in compromise, often being allowed to keep all of their assets while satisfying their debt to the Internal Revenue Service.
Accepted Offers Often Below Level Of Debt
On average, nearly half of all offers in compromise made to the Internal Revenue Service are accepted and of those, the average tax paid was between three and 80 percent of what was owed. Tax experts, including many former IRS agents work together with taxpayers on tax debt relief to help formulate what they believe is a fair settlement offer in compromise to get the IRS off their case.
There will be many different factors calculated into the amount owed and into the decision by the IRS to accept the offer including current income levels, total amount of assets and how they assets were obtained as well as the earning potential of the individual seeking tax debt relief. In a few cases where the person has become disabled and likely cannot work again, the offer will be considerably lower than those still earning an extensive salary.
The biggest point of dealing with the Internal Revenue Service is to talk to them frequently about the debt and continue to seek some sort of tax debt relief. Offers in compromise are often better accepted when made through qualified legal counsel and although they will charge for their services, the money saved on past due taxes will more than pay for their work on the tax debt relief.