3/23/2010 3:22 PM (PST)

I'm not sure what your prospects are for a great deal on a tax settlement or abatement. If the IRS was that generous, no one would ever voluntarily pay their taxes. Sergeant Bill provided this response to a similar question some time ago - I'm reposting it here:

It's a fact that no one can accurately predict whether or not the IRS will agree to an offer in compromise and if they do, what they'll settle for. They don't release their algorithm to the public nor do they give it to practitioners.

Go to the IRS's website at IRS.gov and look up offer in compromise. There's information on the site about this program and in fact there's a form you can complete to see if you're eligible.

Companies offering tax debt settlement has become a big thing in recent years. In general, the BBB experience with these companies has been that they over promise and under deliver.

3/24/2010 7:16 AM (PST)

Thanks for the advice. Know any good CPA's who might be able to help my cause?

5/10/2010 7:46 PM (PST)

I went through what I believe was a decent cpa who did the Offer in Compromise for me. It of course cost about $1,000 to do this, and doesn't look like the IRS is going to reduce anything. The Offer forms are online - you could search via the IRS website for them. The instructions for filling it out are pretty clear - if I'd known that was all I could do (as it seems attorney's have no other avenue), I bet I could have figured out how to fill out the forms all by myself. It's worth looking at anyway. IRS gives exact formula for what you can offer.