subject: When In Tax Problems, Make An Offer In Compromise To Avoid Irs Levy [print this page] The biggest worry for any tax offender or anyone with tax problems in the United States is the IRS levy. The IRS Levy is an action taken by the IRS under statutory authority to seize property to pay tax debts. And what makes this action by the IRS even more threatening is that the IRS can take this action without going to court.
The IRS levy is the IRS last weapon when anyone in tax problems has avoided or failed to pay taxes and the amounts have accumulated to levels that they cannot pay off or do not seem interested in paying off.
Most people get into tax problems at one stage or another of their lives. However, letting the problems escalate into the IRS levy being used to recover the tax liability is something that can and should be avoided at all costs. Although the IRS has often been painted as an ugly monster that has no feelings, it is a monster that can be tamed and contained.
When your tax debts and IRS penalties imposed on them have accumulated into levels that are beyond your ability to pay, the most logical thing is to make an offer in comprise. The offer in comprise is an IRS program which allows anyone with tax problems or tax debts to negotiate an amount lower than the debt and clear it off. The offer settled is one in the best interest of both the taxpayer as well as the government and promotes voluntary compliance with all future payments. However, you have to qualify for an offer in compromise and to see if you qualify, you use the IRS Form 656, offer in compromise, package.
What many fail to understand is that IRS, just like you, does not like tax problems and would rather get your taxes from you rather than force them out of you. It is cheaper for them to do this. Yes they have the IRS levy but for them that is a means they would rather avoid and hence they give you an opportunity to negotiate with them offer in compromise.
If for any reasons you find yourself in tax problems, the most logical way to go about it is look at the options ahead of you. Trying to get an offer in compromise is one of the options as it reduces the amount you are due to pay as well as keeps the IRS levy off your assets. However, the best way to avoid tax problems is the traditional way. Pay your taxes periodically if you can and ensure that you do not owe the IRS anything.
