Resolving Tax Problems

 If you are in a financial distress, and you owe back taxes to the IRS, then you may qualify for an IRS tax debt reduction program called an Offer in Compromise. The IRS debt relief is available for individuals and business enterprises. The basic requirement is financial difficulties which could cause harm, if the full tax debt would be paid either by an individual, or a business respectively.  

AAS Tax Services provides help with preparing and processing Offers in Compromise, and in negotiations needed for acceptance of the offer by the IRS.

What is an Offer in Compromise?  This is an IRS debt settlement program in which the taxpayer, individual or business, makes a formal written offer to the IRS to settle the tax debt for less than the actual amount of taxes due.  In order to achieve a positive tax debt resolution with the IRS, the taxpayer must prove to the Service that the individual, or business, is not capable of paying back taxes without incurring a major financial harm. In short, Offers in Compromise are strictly accepted on the individual's, or business', ability to pay.

The tax law gives the IRS a lot of leverage in accepting any Offer in Compromise. 

Offer in Compromise is not for everybody.  You really have to prove to the IRS that you are not able to pay now, and that you do not expect to have sufficient financial funds (income) in the future, to satisfy all the former tax debt obligations. The IRS takes into account your current income, necessary expenses, potentials for future earnings, your assets and liabilities, and then determines what amount the IRS could accept as your offer to settle the debt for less.

Similar review is done for a business, assuming that the Offer in Compromise is coming from a business. For business, the IRS will base its decision on the net income potentials, assets not considered essential to run the business, necessity of all the business expanses, etc. 

Please note that similar debt settlement programs, and offers to settle your tax liabilities for less, are offered by different states.  However, the state offers are conducted as separate processes for each state.