OTR Banking Tips, Options

The only time the IRS settles for less than full freight is if your’re destitute, disabled, and have one foot in the grave.
They always get their man. Lots of scams that promise a discount, buyer beware.

 

The IRS calls it Currently Not Collectible (CNC) Status and you have to ask for it. If granted you have 10 years. If after 10 years you are still considered CNC the IRS Generally will write it off. Even in death if they can find money in the estate, they will go after it.

Most of the time this happens to people on government assistance programs like SNAP etc.

 

Offer In Compromise is the name of the IRS procedure where SOMETIMES the IRS agrees to let a delinquent taxpayer re-pay less than the full amount, as calculated by the IRS. What EVERY AD for people claiming they can reduce the amount you owe to the IRS says is they, the one advertising, get IRS approval for 90% of their customers. That DOES NOT mean 90% of the people that call the 800-number or use the website get the IRS to approve their offer in compromise. It means 90% of the customers that the advertiser ACCEPTS as a customer get IRS approval. And only if you believe the advertiser. Advertisers are happy to lie. The legitimate companies submitting Offers In Compromise proposals to the IRS already know what the IRS needs to see and will accept. With that knowledge the legitimate companies pick which potential clients have the reliable enough income, lack of other assets, etc to be approved by the IRS. Imagine I was a talent scout for the NFL and I advertised I could get 90% of my clients an NFL contract. And further imagine I looked at the high school and college football stats for each potential client and I only picked those clients that played at a Division 1 university, had won either a Heisman Trophy or Dick Butkus Award (what's the Heisman equivalent for a player on defense?), or had the top three scores in every test at the NFL Combine. This is what those "we reduce your IRS debt" ads are advertising. They are saying words that make desperate people think "we reduce the IRS debt for 90% of our clients" but they are saying "90% of the clients we choose, because we only choose the easy cases, get their debt reduced by the IRS." Those people advertising often just charge you a fee, wait, and then turn you down. If you have any assets the IRS wants most of them or they will not accept an OIC.

I've had my run-in with the IRS for unpaid payroll taxes. I'm telling you the IRS will reduce the debt you owe to them only if they have squeezed every drop of blood out of you and you have no prospects for future income. However the Form 9465 from the IRS is the taxpayer's proposal of a payment over time. It takes the IRS a year or more to answer that proposal. A steady repayment according to the 9465 proposal has tremendous influence in the IRS whether to accept the 9465. The proposal on a Form 9465 must be realistic. You cannot offer to replay $50,000 in IRS debt by paying $10 per month for the next 5,000 months. You can propose to repay %50 of your monthly discretionary income, and then never miss a payment. I grew up poor and I learned there are many industries that make a fortune off telling poor and desperate people "there is an easy way out, just sign here." I was able to MOSTLY learn from other people's mistakes. I would steal from the mafia before I shorted the IRS one penny.

What to Do if You Can't Pay Your Taxes