Offer in Compromise Question maybe Bankruptcy?

Question

I've been reading the OIC questions on this board and was hoping I could get mine answered. I owe about 35000 dollars in back taxes from 2001 and 2003. I have had a tax lien on my record for a few years now which has made it impossible for me to get any type of loan.

If i make roughly 52000 dollars per year, would you think that they would accept an offer? I have ZERO assets and only my 9-5 job. I also have about 9k I owe on a repossesed auto. Do they take other debts into consideration? Should I maybe even try to declare bankruptcy?

Answer 1

It is impossible to give you a yes or no based on the limited information you provided but shooting from the hip, if you are single probably not unles you can come up with a substantial chunk of change, if your income supports a family, maybe. It would take a couple of hours of professional time to sort everything out. What you owe on the repossessed auto will not enter the IRS equation.  

If you have a lot of other debts (medical and credit card bills) you may be a good bankruptcy or Chapter 13 candidate.  

Answer 2

If you show any ability to make payments based on a financial statement that you give the IRS, it's very unlikely than an OIC would be approved. Bankruptcy may be an option if you have other crushing debt, especially if the IRS doesn't allow all of your expenses in their calculation.