Framingham, MA asked in Tax Law for Massachusetts

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!!!

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2 Lawyer Answers
Linda Simmons Campbell
Linda Simmons Campbell
Answered
  • Tax Law Lawyer
  • Burlington, CT

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.

Good luck.

Bruce Alexander Minnick agrees with this answer

Bruce Alexander Minnick
Bruce Alexander Minnick
Answered

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.

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