Thousands of individuals that owe back IRS taxes have an option open to them called the “Offer in Compromise”.  Most people have not heard of the “Offer in Compromise” and it is underutilized as a form of IRS tax relief. One reason the “offer in compromise” option is not often used is that most individuals and professionals have not worked these type of cases with the IRS on a regular basis.  Having former employees of the IRS is a huge advantage that Fresh Start Tax has for all taxpayers who owe money on back IRS taxes and want to settle their case. There are three types of  “Offers in Compromise” available to taxpayers: (1) Inability to pay the tax  (2) Doubt as to the liability  (3) Special circumstances exist, this option, Effective Tax Administration.  Qualifying for any of these three types of “Offer in Compromise” could reduce your tax significantly.
The Effective Tax Administration program exists for all those who agree that the tax liability is correct, and there is potential to collect the full amount of the tax owed, but a special circumstance exists.  A special circumstance could be having a family member that requires special medical care and any funds saved are allocated to cover the cost of future medical care. These types of special circumstances would allow the Internal Revenue Service to consider an “Offer in Compromise”. To be eligible for this type of   “Offer in Compromise”  program, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
During these economic times, few people know that this option is open to  them. Now is the time to take care of your back taxes and settle your IRS debt. The IRS understands the conditions many taxpayers are facing, but must follow their rules. It is time for you to use IRS rules to your advantage. With many individuals losing their houses and jobs, there is no better time than right now to file an “Offer and Compromise”.  If you do not have the ability to pay the IRS the full amount owed or you have special circumstances, now is the time to settle your debt with the IRS.