Q: Hello. I need to write a letter of Compromise to IRS. I owe around $36K and want to know if I can offer to pay nothing
I don't work, have a CORI, no assets i.e. real estate, 401K or pension. Have an Autistic son and a wife. We live with our parents so they support us. My Net Worth is at ( -36,000 plus I'm on the hook for another $70K that company is suing me for equipment I bought and the machines all broke down and useless) I NEED HELP!!!
A: An Offer in Compromise is not submitted via a letter. You have to fill out a financial statement and submit supporting documentation for your expenses, as well as Form 656. Without more details we cannot tell you if you are eligible or not. You can try submitting an Offer on your own, hire an attorney, or try and get free assistance from a local low income taxpayer clinic. Here is the link to for more information https://taxpayeradvocate.irs.gov/about/litc
If you decide to hire a tax attorney stay away from the places you see advertised on TV. Search here for a good tax attorney. Most of us offer a free consultation. You may also want to consider bankruptcy (if you are eligible) since you have another substantial debt.
Bruce Alexander Minnick agrees with this answer
A: Really? FYI, offering to "compromise" the amount you owe by offering to pay nothing is NOT a compromise. And even if you do prepare a professional looking offer that includes unverified "proof" of being flat broke the IRS will probably not be impressed. Why? Because the IRS knows you are still breathing, eating every day, driving around town and doing many other things that cost money. Get real and agree to repay some reasonable amount--in monthly payments you can afford.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.