Let make a deal

IRS might be willing to make a deal."
Alway have representation when talking with the IRS the best is a EA -enrolled agent.
The IRS is looking for money.They are willing to make a deal. Some money is
better than no money.
When the tax bill arrives from Uncle Sam, some might find they're in over their head. Those who want to settle their bills for less than what they owe might apply for what's called an "offer in compromise." Just over one third of OIC applications were accepted in fiscal year 2011, up from 25% in 2010. But getting that approval isn't easy. Taxpayers must show they don't have the assets or income to pay the amount owed and there may be an application fee of $150.

There are other options for those who can't afford the bill. Those who owe $50,000 or less can start a monthly installment agreement with the IRS. Taxpayers going through a financial hardship may be able to temporarily suspend collection actions until their situation improves. And a program introduced this year gives some filers more time to pay their taxes penalty free. A six-month grace period is available for people who have been unemployed or self-employed and whose income decreased by 25% or more in 2011.