I have consulted with an attorney and an accountant and the fees for filing an offer with the IRS far exceed what I am able to pay. Do you know of any services that are available for low income tax payers?
I do not know enough facts about your situation, but here are a couple of suggestions. You state that you are low-income. You would first need to file all the necessary returns before you can submit an offer, if you have not already done so. It may be that you do not need to file returns for certain periods because you did not earn enough income for that period. If you cannot afford to file all the necessary returns, then the VITA Program (link is included below) can help you file your returns.
If you qualify as low-income, then then you may also seek assistance from low-income taxpayer clinics (link is below). It looks like you are in Florida. Below please find a link of low-income taxpayer clinics in Florida.
Anna Barsegyan (818) 396-8272. The statement above is general in nature and does not constitute legal advice since not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship. Answers on Avvo can only be general ones, as specific answers would require knowledge of all the facts. As such, they may or may not apply to the question.
Depending on your situation, you might not have to make a 20% down payment with your offer or pay the $150.00 user fee. An experience accountant and tax attorney would know how to determine whether or not you are eligible for the low income certification.
In regard to the professional fee to prepare an Offer in Compromise, you should call around and check prices, but it's best to go with a law firm that has a good reputation. Stay away from those scam companies that you see on TV and hear on the radio.
There might be a low income tax clinic near you that could assist you for little to know cost. You should check online and see if a clinic is located near you.
This material does not constitute tax, legal or accounting advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS or NYS penalty. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. This response is not intended to create, and does not create, an attorney-client relationship between you and the author.
If you are not able to pay the amount required to make an offer in compromise and you have very little income at the moment, you may be eligible for a currently not collectible status. This means that the IRS places your account on hold in effect for a certain period of time. Often "the hold" can be as much as two years but that is determined on a case by case basis. This is something that may be negotiated and I suggest an attorney's assistance in doing so.