Did you know that you can settle your debt with the IRS for less than the amount they say you owe with their Offer in Compromise program? If you qualify, the program allows you to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities you cannot afford to pay. Late night commercials will claim you can pay "pennies on the dollar." Although not impossible, the amount the IRS will accept is based upon a specific formula utilizing a complex set of rules and regulations. Every situation is different and general statements about promised results are misleading to say the least.
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).
Often it is possible to fully and completely eliminate the taxes you owe - including all penalties and interest - at an enormous discount. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done "right."
If done correctly your debt may be settled for much less than what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.