These words “pennies on the dollar” are perhaps the most misused words in tax problem resolution. This phrase is used phenomenally well by advertisers to attract clients willing to pay a fee for access to a bargain settlement and a fresh financial start. But the problem is that a small percentage of taxpayers qualify for this approach and an even smaller portion have the assets to actually pay for a negotiated settlement. A number of psychological forces tend to distort an objective view of the problem.

The majority of taxpayer offers to settle tax debt at less than face value are denied. Various sources of misinformation on this issue are widely circulated in social media. The best rough estimate is that 4 out of 5 offers to settle debt are rejected at less than face value. As a result

Fortunately, there are many other ways to favorably settle tax debt. Each taxpayer should consider all the options before allowing an emotional attraction to rule the day and extract a large payment for an outcome that is not possible. It makes sense to spend more time asking questions in advance before hiring a tax CPA to settle tax debt.

An experienced tax resolution professional will spend a substantial amount of time reviewing all of the records – yours and the IRS’s – and considering all of the options before making a recommendation on the best path to problem resolution.