Q: Can I really pay only pennies on the dollar to settle my back tax debt with the IRS?
A: You are most likely referring to all of the advertising hype that fills the country’s T.V. and radio airwaves these days. The reference to paying pennies-on-the-dollar usually refers to an Offer in Compromise. This is a remedy for past tax debts that is allowed by U.S. tax law. The problem is that not everybody meets the qualifications set out by tax law to file a valid Offer in Compromise. Many tax debt resolution companies will falsely lead people to believe that they can file an Offer in Compromise with the IRS and offer to pay a lesser amount than they owe. Also, they really can’t tell if you are a proper candidate for an Offer in Compromise by asking you a few questions over the phone. A deeper analysis is required. Although they can file the papers for an Offer in Compromise, what these companies fail to tell you is that the majority of “Offers” are denied by the IRS. The greatest reason for this is that the Offer was not the appropriate remedy in the first place. Although Offers in Compromise are definitely good remedies in the right situation, there are many remedies available to deal with delinquent tax problems. Some of those remedies may even be better for you depending on your particular situation. It takes a professional that is knowledgeable and experienced in tax debt matters to be able to analyze your situation appropriately and present the best possible remedies to you. Contact Attorney Sheldon Lazarow at 520-623-5856 to discuss the remedies that might be available to you.