Getting the right tax advice and tips is vital in the complex tax world we live in. The Kiplinger Tax Letter helps you stay right on the money with the latest news and forecasts, with insight from our highly experienced team (Get a free issue of The Kiplinger Tax Letter or subscribe). You can only get the full array of advice by subscribing to the Tax Letter, but we will regularly feature snippets from it online, and here is one of those samples…
Making an offer with the IRS to settle your tax debt at less than what you owe? There are two payment options.
- Lump-sum cash requires 20% of the total offer amount to be paid up-front. The remaining balance is paid in five or fewer installments within five months of the date your offer is accepted.
- Periodic payment requires that your first payment be made with the offer, with the remainder remitted in monthly installments over a period of six to 24 months.
For more information, check out the IRS’s newly updated Form 656-B booklet for rules and forms. Also, the IRS has an online tool for individuals to check preliminary eligibility for filing a compromise offer. Go to irs.treasury.gov/oic_pre_qualifier for details.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Be sure you’ve filed all required tax returns before submitting your offer. Otherwise, the IRS will return your application and the filing fee, and apply any initial payment included with your submission to your tax debt. Also, individuals or businesses in bankruptcy cannot apply for an offer in compromise.
Watch out for fake promises to settle your IRS tax debts
Also, beware of “offer in compromise mills,” the IRS’s term for firms and promoters that hawk tax-debt-relief plans with promises to settle your debts at steep discounts, even pennies on the dollar. Many of these are advertised on radio and TV, charge big upfront fees, and churn out applications for relief that some of their clients can’t even qualify for.
This first appeared in The Kiplinger Tax Letter. It helps you navigate the complex world of tax by keeping you up-to-date on new and pending changes in tax laws, providing tips to lower your business and personal taxes, and forecasting what the White House and Congress might do with taxes. Get a free issue of The Kiplinger Tax Letter or subscribe.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Tax Rule Change Could See Millions Lose Health InsuranceThe Kiplinger Tax Letter If current rules for the health premium tax credit (PTC), a popular Obamacare subsidy, aren't extended, 3.7 million people could lose their health insurance.
-
The IRS is in ChaosThe Tax Letter DOGE, departures, data agreements and more are creating havoc at the IRS.
-
Should You Do A Roth IRA Conversion? Nine Things to ConsiderThe Tax Letter Thinking of converting a traditional IRA to a Roth IRA? The Kiplinger Tax Letter Editor highlights nine factors you should consider before making a move.
-
Expiring Business Tax Breaks And Trump's Tax PlanThe Tax Letter Four important business tax breaks are likely to be a part of President Trump's tax plan. We'll break them down for you.
-
AMT and Pass-Throughs Add Complex Layers to 2025 SALT Tax PlanningThe Tax Letter The state and local tax (SALT) deduction is a key sticking point in President Trump's tax plan.
-
Popular Tax Breaks Are in DangerThe Tax Letter A number of tax breaks, including the home mortgage interest deduction, are in peril as lawmakers hunt for revenues to pay for the President's tax plan.
-
Six Hurdles for Trump's Tax BillThe Tax Letter While the odds for a new tax bill in 2025 are quite good, there are some sticking points that President Trump and Congress will have to work through.
-
The IRS is Pursuing Partnerships and Their OwnersThe Tax Letter The IRS has many enforcement priorities, and partnership tax noncompliance is near the top of that list.
