Settlement of Tax Liabilities

By now, you may know that after the IRS or other taxing authority files a public notice of tax lien against you, hundreds of “tax workout” companies start to write and bombard you with promises to “compromise your taxes for ‘pennies on a dollar.’”  On the radio, television and in the newspapers, these fantastic promises are repeated.

Do you really think that the IRS is simply going to knock off 90% of your tax bill because you are having a hard time satisfying all of your bill collectors?  Is it reasonable to believe that the IRS is willing to allow you to pay your VISA bill instead of your taxes?  Do you truly believe that the IRS is going to allow you to not pay your taxes because you had two children in college and did not want them to have to take out student loans?  After even a few moments of consideration, you should realize that the answer to all these questions is a definite “No.”

The IRS has set standards and methods on how it will determine the amount you can afford to pay each month toward your old tax bill.  As far as the IRS is concerned, payment of credit card charges, college tuition, or even car and house repairs do not come before the payment of taxes.  While it could be that you are one of the very few people that do qualify to settle their taxes for “pennies on the dollar,” it is much more likely that you need to consult with a qualified and knowledgeable tax professional about how you should work with the IRS or other taxing authority to resolve your tax problem and get on with your life. Unless you earn a very low income, it is unlikely you will be a good candidate to have your taxes compromised because of inability to pay.

Joseph Falcone has settled tax liabilities for literally “pennies on the dollar” many times, but these settlements did not come as any big surprise.  There is a method to achieve good settlements on tax liabilities and it is important to know when such settlements are available.  When a compromise or reduction of the tax you owe is not going to work for you, however, it is just as important that you do not waste your time and money going down that road.  The law provides for adverse consequences to you when you formally ask the IRS to compromise a tax you admit you owe.

The goal should always be to help a taxpayer pay the lowest amount of tax that can legally be paid.  There are several avenues to accomplish said goal.  Joseph Falcone has guided many other taxpayers down all those avenues in the past and is available to help you solve your tax problems.