Anyone who has been through the wringer of a confrontation with the IRS knows that the agency is a bulldog. Whether it suspects or knows that a taxpayer in the U.S. or overseas owes money, it will stay true to its mission, going to the mat to make a collection.
Even in the face of budget cuts that have top IRS officials warning that taxpayer services are being kicked to the curb, there is no indication that there will be any similar scaling back in collection. Taxpayer phone support is projected this year to be only half what it has been, and the number of irs audits will decline. And those who file paper returns could see refunds delayed.
Officials also warn that as result of the reductions, tax compliance may suffer. Taxpayers, unable to get the government help they need, are likely to make more and higher-cost mistakes than usual. Alternatively, many people just won't file returns at all.
It is a fact of law that taxes must be paid. However, it is a fact of life that you can't squeeze blood out of a turnip. A person facing a tax liability who has made legitimate efforts to meet the obligation without success may be in a position to make an Offer in Compromise, or OIC.
Not everyone is eligible to make an OIC. To be sure you qualify and that the process is handled completely and effectively if you do, requires knowledge of the law that comes with depth of experience. Contact an experienced IRS Tax Attorney for ways to reduce your tax liability.