Does the tax relief settlement program, that works like the debt relief program, work?

One Response to Does the tax relief settlement program, that works like the debt relief program, work?

1. Jss says:

   March 30, 2010 at 10:06 am

   Be careful before paying any one for this. There is Offer in Compromise, but mostly it is rejected.

   This is offer for compromise Form 656A. An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
   IRS will generally accept an Offer in Compromise when doubt exists that the taxpayer could pay the full tax liability within the statutory period of collection and the amount offered by the taxpayer is consistent with his/her ability to pay. Taxpayer must provide reasonable document to verify his/her ability to pay.

   The three main reasons for submitting an Offer in Compromise are:
   1. Doubt as to Collectibility, 2. Double as to Liability, and 3. Effective Tax Administration.

   The taxpayer agrees that the tax is correct and he/she has potential to pay it, but this payment will create extreme hardship.