I owe the IRS over $10,000 I have no assets and no job how do I go about doing a letter of compromise?

Question

Have no assets, no car, no home, no job. no bank account.

Answer 1

Unless you're elderly or disabled with bleak future prospects, you probably won't qualify for an offer-in-compromise. However, if you're unemployed with no assets you will qualify for deferrment of collection. This is a status in which the IRS does not pursue collection until you're able to make payments.  I suggest calling them at the number on your collection notice. It should only take about 15-20 minutes to resolve your case.

Answer 2

... then how did manage to owe the vultures $10K+?

Search "IRS Compromise Letter" or ask a tax accountant/attorney

Answer 3

You have to prepare a Collection Information Statement that details all your assets (You either have something or you are walking around naked) income and expenses and the Offer in Compromise form in which you must offer an amount that represents the reasonable collection potential--that's IRS jargon--of the account based on IRS standards. If you are just temporarily out of work, your account would most likely be reclassified as currently not collectible.

As an enrolled agent, I handle these kinds of problems professionally.  If you would like more information outside this forum, you can send me email by clicking on my profile.

Answer 4

Time to get a JOB!  

Download Form 9465 and write on it NO JOB: CAN'T PAY and also download Form 433F Collection Information Statement from the IRS website www.irs.gov

IRS can and will place your account in Currently not Collectible and each year will sent you an annual statement, interest and penalties continue to accrue until you pay the amount you owe in full.

Do it right away so IRS knows you are not able to pay and that you are not ignoring them.