All over the television, and in your spam email box, there are advertisements for IRS settlements.  These companies can help you lower your IRS debt for a fee, customers say they paid a minimal amount, blah blah.  Is this a scam? Well, most likely.  There is a possibility of a settlement for your IRS debt, but you definitely do not need to pay horrendous fees to a company to do it for you.

 Here are some tips:

1.An IRS settlement is called an Offer in Compromise.

2.  The IRS cannot accept a settlement if you can actually afford to pay your bill.  If you know this is you, check out the payment plan options on the IRS website.

3. For the IRS to even consider a settlement, all required tax returns have to be filed and an initial payment needs to be paid.  So if you are behind on your taxes, clear that up first.  Then make payments.  If this is for a prior debt, you have be current on your estimated payments for the tax year.

4.  If there has been a judgement or a lien, no offer in compromise will be accepted.  Basically, if a judge says you have to pay it, you’ve gotta pay it.  No exceptions.

5.  Visit the Offer in Compromise qualifying page.  This will let you know if you qualify and provide an estimate of what offer you should make.  Of course, the IRS has the final say on whether it is accepted or not.

Have a question? Contact Danielle Harris. Your comments are always welcome!