Did you know that you can settle your debt with the IRS for less than you owe with their Offer in Compromise program? The program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay.
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).
There is no preset bottom limit that the IRS will accept to settle your debt.
If done correctly your debt may be settled for a fraction of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
