Does offer-in-compromise really work?

[undefined]

I owe about $5K in federal taxes over three years.

I am completely broke. My business failed, I have no income, no job, no savings, no assets, nothing.

Is it possible that an offer-in-compromise would work for me? Does anyone know of a reputable company that could handle this for me?

 

[abezon]

OIC might work for you based on inability to pay. However, I doubt any professional would take your case, since the amount owed is so small. You might try the library or local bookstore for a self-help legal book on filing an OIC.

 

[dallas702]

And before you consider any of those TV scammers who claim they can get you out for "pennies on the dollar", research their complaint records. For $5k you can sit down with the IRS taxpayer advocate and see what they will do, but in my experience they only advocate what the IRS regs already say. But, it is free. Have you received a Notice of Intent to Levy, or even a Notice of Deficiency yet? Hopefully, you are able to take some action before it has progressed this far.

 

[undefined]

And before you consider any of those TV scammers who claim they can get you out for "pennies on the dollar", research their complaint records. For $5k you can sit down with the IRS taxpayer advocate and see what they will do, but in my experience they only advocate what the IRS regs already say. But, it is free. Have you received a Notice of Intent to Levy, or even a Notice of Deficiency yet? Hopefully, you are able to take some action before it has progressed this far.

Yes, I have received the Notice of Intent to Levy. But I have absolutely nothing that they could take.

However, I am going back to school in a few weeks after a three year hiatus. I will be getting a work study job to pay rent and food... will that paycheck be garnished immediately? Does anyone know how that works?

 

[dallas702]

Since you already have the NIL, call them and see what kind of payment plan you can get. OR....maybe a student loan (I know, not the best way to use "education" money) you could use to pay the IRS, then you'd have a long time to pay it back.