Almost anyone who owes the IRS money can make an offer of payment for
a lesser amount than the taxes + penalty + interest and have it
accepted by the IRS. There are companies that will even negotiate for
you.  Most of the poor don't have problems with this because most of
the poor don't pay taxes.  Those who get hit hard are middle class and
small business owners who don't deduct or pay estimated taxes.  Or
musicians and politicians who hire incompetent or crooked business
managers and accountants.

On Wed, May 26, 2010 at 2:01 PM, Judah McAuley <[email protected]> wrote:
>
> Actually, from what I understand at least, if you owe back taxes and
> are able to pay, the IRS is happy to just take your money and put the
> matter to rest (with interest and penalties of course). They mostly
> care about the money. If you continue to evade taxes again and again
> or refuse to pay, then the courts get involved. But if you have the
> money to pay, they'll just take it. The problem being those people who
> evade taxes because they don't have the money and therefore don't have
> the money to pay the taxes plus fines. So yeah, in the end, the poor
> get hassled worse than the rich, but I think it is mostly because the
> poor can't pay the penalties, interest, etc.

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