Those ads that claim you can pay the IRS pennies on the dollars are not really true. But that should be no surprise to most.
The advertised Fresh Start program from the IRS has three components; it addresses tax liens, installment agreements and finally OIC.
There is basically one program of the IRS that allows for payment less than the full amount due. That is Offer in Compromise (OIC).
I just had a client who has had an OIC accepted. The circumstances of this case where such, that it was favorable for the IRS to accept the offer.
I am expecting a second OIC to be accepted in the next couple of weeks.
There are certain elements that will prevent an OIC from being accepted. Reasonable income levels, owning anything, the ability to earn future income, granted these may be slight exaggerations but not by much.
It is possible to file an OIC on your own, or you could go to one of those who advertise on the radio. I think the best response is to work with a trained professional who has your best interests at heart instead of a factory who is just processing paper.