I hear and see ads all the time for companies that "will reduce the amount of taxes you owe to the IRS". Can these companies really negotiate your past due taxes with the IRS? As someone who pays my full taxes every year I hope this is not true!!
Negotiating with IRS on back taxes
byu/Difficult-Text1690 intax
Posted by Difficult-Text1690
2 Comments
You can get some penalties and the interest on penalties waived. They usually do not waive the interest charged on the original tax owed, the original sum itself.
In some cases, they will agree to an offer in compromise, but you need to qualify to receive one.
“Pennies on the dollar” typically refers to an IRS Offer In Compromise, which is a valid method of collecting on a federal balance due.
https://www.irs.gov/payments/offer-in-compromise
https://www.irs.gov/businesses/small-businesses-self-employed/offer-in-compromise-faqs