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New Years Resolution - Taking Care of Tax Debt

Education & Training with Strong & Hanni

Salt Lake City, Utah, 2023.  You have been watching late night television, you have seen the commercials - "take care of that tax debt", "pay pennies on the dollar."  "Enough of those sleepless nights" you tell yourself, it is time to pay those pennies and move on.  The late night commercial then shows a happy couple on a golf course after they have paid those pennies.  Is this to good to be true?  


To pay those pennies on the dollar the taxpayer usually does this through what is called an offer-in-compromise.  There are two types of offers-in-compromise:

  • Doubt-as-to-Collectability Offer: this is where the taxpayer does not disputes the amount owed in back taxes, but the taxpayer cannot pay the tax debt in full; or
  • Doubt-as-to-Liability Offer: this is where the taxpayer offers to settle the debt based upon being able to prove they do not actually owe all of the underlying tax.

When dealing with the IRS Collection Division most offers deal with Doubt-as-to-Collectability.  Before you file an offer with the IRS, make sure that you understand the numbers, make sure the math works, make sure that you are an eligible offer candidate. There is more to an offer than just paying pennies on the dollar.  Some of the numbers are dependent on where you live, Salt Lake City. Remember, only 40% of the offers made are accepted by the IRS.  Why?  Because the taxpayer is not an eligible offer candidate or the math was not done correctly.  This important fact is what has been omitted from that late night commercial.  If you or someone you know needs tax help, contact us at: (801) 532-7080, or email us at: kbrown@strongandhanni.com, ask for Kent Brown.  If you have payroll tax issues, sales tax issues, liens, garnishments or levies, we can help. https://strongandhanni.com/attorneys/attorney-kent-brown/ 

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello and Welcome to the Rain were we all learn from each other and help each other.  Make it a great day!


Jan 04, 2023 08:41 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Kent - finding trustworthy representation is not easy but it is crucial.  Proper due diligence certainly plays a part.  Congratulations on your first ActiveRain post.  I hope you will learn, discover and find much as you explore the AR community.  I wish you continued success in your practice and good luck here too.  

Jan 04, 2023 01:34 PM
Matthew Klinowski, PA
Downing Frye Realty - Naples, FL
Naples Golf Guy | Find Your Dream Lifestyle

Welcome to ActiveRain, congrats on your first post.

Jan 04, 2023 06:36 PM
John Pusa
Glendale, CA

Welcome to the ActiveRain community. Congratulations on your first post.

Jan 04, 2023 08:24 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Most of America does not spend enough time learning about our Federal Tax Code

Jan 07, 2023 02:50 AM
Kent Brown

So true.

Jan 12, 2023 10:33 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Kent Brown 

Jan 16, 2023 04:05 AM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Kent ~ Welcome to ActiveRain and nice blog post to start things off here.  Those commercials sound so good, but there are always qualifying circumstances for participation.  

Feb 14, 2023 11:38 AM
Kent Brown
Strong & Hanni - Salt Lake City, UT
Your IRS Tax Attorney

Thanks AJ.

Feb 14, 2023 12:30 PM