The IRS does have a program called Offer in Compromise which is basically call them up and say I will pay this much. Only thing is you file a form and you probably need someone with some expertise to fill in the form. Here’s the catch, the IRS is not stupid and they have the best collection agency in the world. They are not going to deal unless they think that they are never going to get paid or that you don’t really owe the tax. They have a long time to collect from a young guy like you and I assume you owed the tax?
So here’s what happens. You call up some guy on TV like Tax Masters and they say “sure for $2,500 we can knock you tax down to a grand”. You write the check, they fill in the form. You get rejected, they say “sorry”. The IRS got probably 20% of what you owe with the form so they have that much less to go after you for. Everyone but you wins. The rejection rate is in the high 80’s or above 90%, I can’t remember for sure.
So you are going to pay. The better idea is to figure out how to screw them out of next year’s tax- that is more do-able.
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