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Our Client Asked:

Dear Advice Team,

I owe the IRS approximately $20,000 dating back to 1999, and most of that is due to interest and penalties. I was thinking about an offer in compromise, but I don't have much money. I have heard some stories that the IRS has taken pennies on the dollar to settle some cases. My questions are: 1) Do you have any knowledge about this kind of settlement? 2) Do you have to have all the money up front or will they take a certain amount and then take payments so that there is an end in sight? -Iris

Dear Iris,

In my opinion, it never hurts to ask. The IRS will may agree to a compromise if it is made on one or both of the following grounds: (1) Doubt as to the liability of the amount o More...

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