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?
Yes!!!
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/
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