"Pennies on the Dollar"

So often I am asked by clients if their tax liability can be settled for 'pennies on the dollar'. They tell me they have been told the IRS will accept most any reasonable offer if the tax payer is ready to pay. I have told them the IRS will accept 'pennies on the dollar' if thats all you have the ability to pay and are likely to pay before the end of the statute for collections. To be more specific, if a person owes $50,ooo in taxes, interest and penalities and lives in a home with plenty of equity, has a good income and plenty of assets and has the ability to pay the full amount, that is exactly what the IRS will try to collect. The Offer in Compromise is designed for those who do not have the ability to pay the amount in full within the statute period