The recession has everyone scrambling to maximize income, whether it is a family clipping coupons and trying to cut costs or a business laying off workers and attempting to renegotiate their debts. Even the government is trying to bring in revenue.

To this end, the Internal Revenue Service recently announced a plan to give offshore tax evaders a break on the amount they owe if they will come forward and pay.

A story that appeared on the New York Times Web site offers details on how the government agency is offering the deal to try to lure individuals who have hidden assets in secret accounts overseas to pay what they owe before the government locates the assets.

If you owe back taxes to the IRS, shouldn’t you take advantage of the current economic climate to try to make the best deal you can to clear your tax debt.

Contact a professional tax attorney today to see if you may qualify for an offer in compromise or other negotiated tax settlement offer.

If you qualify for Offer in Compromise there can be significant benefits, some of these benefits include:

• Collection efforts by the Internal Revenue Service will be halted while the Offer in Compromise application is under review.
• The taxpayer may ultimately pay less than the original tax liability owed.
• Offer in Compromise may eliminate tax liens against personal property after the debt settlement amount has been paid.
• Offer in Compromise may eliminate the need to file for bankruptcy.
• Offer in Compromise can offer a fresh financial start for an individual by eliminating the headache of the unpaid tax liability.

It is important to remember that a debt owed to the Internal Revenue Service is unlike other types of debt. Do not wait to contact the Internal Revenue Service if you are unable to pay your federal tax bill in full or if you get behind on your taxes. It is important to take immediate action to eliminate all federal tax debt. The Internal Revenue Service has a variety of methods it can use to collect tax liability including: wage garnishment, levying back accounts, and applying tax liens to your personal property.

If you owe federal taxes and are not able to pay your tax bill, call a tax attorney who can discuss all your tax debt settlement options.