Offer In Compromise
Did you know that you can settle your debt with the IRS for less than the full amount you owe with their Offer in Compromise program? The program allows taxpayers to settle with the IRS on tax liability that the tax payer cannot afford to pay.
While it is feasible, (although uncommon) to fully and completely eliminate the taxes you owe - including all penalties and interest, it is not uncommon to settle your debt for considerably less than what you presently owe. There is no preset bottom limit that the IRS can not dip below to settle your past due tax liability especially if your offer is presented correctly.