While taxpayers may often hear advertisements regarding settling with the IRS for "pennies on the dollar" this is very rare. If you do owe a substantial amount of back taxes, it is wise to consult with an experienced and reputable tax professional who can advise you of your taxpayer rights and options.
If you're encouraged that, by filing an Offer in Compromise, it will be easy to reach a quick settlement, think again. The vast majority of OICs are not accepted and by voluntarily disclosing financial information you may not be otherwise legally bound to disclose, you could be putting your financial future at greater risk.
It's important to understand that, when you contact the IRS directly, you are likely communicating with a frontline collector whose sole task is simply to collect on a tax debt – not negotiate a favorable resolution on your behalf. That being said, there are some key behaviors and tactics that can go a long way towards helping taxpayers reach the most favorable outcomes: