New Years Resolution - Taking Care of Tax Debt
By Kent Brown, Your IRS Tax Attorney
(Strong & Hanni)
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 s...