Comments on: What is the catch, Companies advertise saying they reduce your tax liability if you have an outstanding debt?

By: Matt M

Matt M — Mon, 28 Dec 2009 09:03:34 +0000

The trick is in the language. The IRS will negotiate on some of the penalties and/or the interest on the originally tax owed but will never decrease the original (ie before the penalties and interest) underlying tax amount owed. The IRS will negotiate on these items if you will agree to pay on time or on a schedule in the future. The people on tv are lawyers or consultants who will help in your negotiations. You may able to try to negotiate yourself simply by asking if they will negotiate when they contact you.

By: growing inside

growing inside — Sun, 27 Dec 2009 17:12:57 +0000

If you owe more money to the IRS than you can afford to pay, you can negotiate with them to pay a lessor amount. You can call the IRS yourself and do this. Or you can go through a company - the advantage of using a company is that they have experience and can usually get you a better deal. The disadvantage is that you will have to pay a fee to the company, while you can do it yourself for free. Also, some of the place that advertise on TV are not very reputable, so you have to be careful. Generally, if you owe a small amount, you should just negotiate yourself. If it is a lot, you can hire a tax expert.

By: Rob

Rob — Thu, 24 Dec 2009 13:08:16 +0000

9 times out of 10 these companies are a rip off, they charge you an up front fee and do nothing, so you are out 2000.00 or more and you still owe.
You can submit an Offer in Compromise, there is a fee that needs to be included with the application but it is less that 200.00 you have to complete this form with all of the financial date the IRS needs to make a determination to allow or disallow the OIC. For more information call the IRS at
1-800-829-1040