Archive for May, 2011
Most people have never heard of an Offer in Compromise. If you have a tax bill you cannot pay and the I.R.S. is demanding that you pay that tax bill, you may be eligible to resolve your delinquent tax problem for far less than you actually owe. It depends on your situation, but it may be an option to resolve your tax problem. An Offer in Compromise is a little known provision that allows the amount of your tax bill to be negotiated with the I.R.S. Offer in Compromise applies when there is no way that you can pay the full amount of your tax bill and it is highly unlikely that you will be able to pay the full amount of the tax bill in the future.
A Federal Tax Lien is a very serious problem. When you have not been able to successfully resolve a tax problem with the I.R.S., they can put a lien on your property. A Federal Tax Lien gives the entity holding that tax lien a legal right to your property. You cannot sell a property with a Federal Tax Lien and you also cannot use the property as collateral for a loan. The simple fact is that you need a clear title to sell or borrow against a property and a Federal Tax Lien prevents you from having a clear title. This, in effect, puts you in an impossible situation. You cannot sell the property or borrow against it to clear the Federal Tax Lien.