A politician running for state office recently encountered some significant criticism over tax debt associated with the communications company that the politician owns with his wife. The man has joined the ticket as a lieutenant governor candidate alongside a democratic nominee for governor of their state.

The tax debt totals about $825,000 and has to do with the struggling publications held by the communications company. According to local reports, the debts are associated with individual publications held by the company and with the company itself. Some of the debt was possibly inherited when one of the publications was purchased.

Political issues aside, this case shows the difficulty of resolving tax debts and the challenges that many people face when they realize that they or their business has acquired tax debt.

When it comes to settling tax debt with the IRS, taxpayers have a few distinct options. One is to make an offer in compromise to the IRS. These are available when the person does not have the resources to pay all of the debt or collecting from them would be unreasonable or unfair for some reason. In other situations, offers in compromise or settlements can be the most appropriate remedy when the tax debt has been incorrectly attributed to an individual. Negotiating a settlement with the IRS can be complicated and difficult, so many taxpayers find it helpful to consult with a professional experienced in these complex tax matters to get the process started or to carry it to completion. 

Source: Columbus Dispatch, “Kearney’s total tax debt: $825,000,” Eric H. Kearney, Dec. 5, 2013.