Are you considering making an offer to settle your federal tax debt at less than what you owe?
There are two payment options: Lump sum cash, which requires 20% of the total offer amount to be paid up front, with the remaining balance to be paid in five or fewer installments within five months of the date your offer is accepted.
Periodic payment requires that your first payment be made with the offer, with the remainder remitted in monthly installments over a period of 6 to 24 months.
Beware of the scam artists that advertise promises to settle your IRS tax debts for pennies on the dollar. The IRS calls firms that hawk these types of tax-debt relief plans “offer-in-compromise mills.” Many of them charge big upfront fees, warn that time is running out to settle the debt, and churn out applications for relief that most of their clients can’t even qualify for.
So no forgiveness and less money in your pocket.