[adrianm]

This is totally false. Not only can you negotiate with them, but you can also set up very reasonable repayment plans based on your ability to pay. I was surprised how easy it was to do this and how willing they are to work with you to actually resolve everything. It does take a couple of hours to get an agent on the phone, though.

[godelski]

How does this affect your credit? And can you, like large companies, only pay a portion of the tax you owe?

[mlindner]

Your credit is not affected. Large companies do not "only pay a portion of the tax they owe". They are following the law and taking tax exemptions. You can do the same. Disagreements arise in the details of tax law in how various exemptions combine with each other, especially if you itemize deductions. You can't usually just say "I want to pay less", you have to have some reason why you think you owe less.

[adrianm]

My credit was unaffected. I objected to some of what they claimed I owed, and got them to throw out almost half. No interest and penalities.

[throwaway613834]

But how do you get them to finally give up? If they say you owe X and you say no, I owe Y, then does one of you have to threaten to go to court before expecting a settlement?