Payment Plans:
If you don't qualify for the IRS Offers-in-Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you a little more time to pay off your tax debts.
Penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt. As a certified CPA firm, Hennekes CPA Services is allowed to request full or partial abatement of your penalties.
Offers-in-Compromise:
Offers-in-Compromise is a formal procedure with the IRS to reduce the amount you owe to the IRS because you lack sufficient assets to pay the amount owed.
The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
The formal procedure can be costly, but it is possible to significantly discount the taxes you owe - including all penalties and interest.
If done methodically, fairly and with reasoned thought, an Offer-in-Compromise can potentially settle your tax debt for 15% to 70% of what you presently owe.
