What is an Offer in Compromise?

The Offer-In-Compromise is an IRS program in which qualifying taxpayers can settle their tax debt for less than the full amount owed. You can get “fresh start”. Settle back taxes. Release your tax liens. Start over.

Its based on what you owe, how much you can pay now, and your expected ability to pay in the future.

The key issues are

  • Do you qualify?
  • How much can you pay now?
  • What is your excess income to pay going forward?
  • How old is the tax debt?

When Will the IRS Settle Taxes for Less?

The IRS will settle your tax debt when

  • there’s doubt as whether or not you actually owe the tax
  • whether or not you can actually pay the tax
  • amount that can be collected from third parties
  • where certain other exceptional circumstances exist

How Much Must You Pay in an Offer In Compromise?

There is no “easy” answer to this question. Largely, it will depend on how much you have available to pay now, and how much is available after paying your living expenses going forward.

When Will the IRS Reject an Offer in Compromise?

An offer-in-compromise must meet certain minimum acceptance standards to be considered. Once considered, the IRS determines if the proposed offer is too low or the payment terms are reasonable. If rejected, the IRS may opt to renegotiate the offer and terms.

How Do You Get Started?

The Offer In Compromise program is not for everyone! Certain taxpayers have the ability to pay their taxes in full, or pay their tax obligations given enough time. Fortunately, if you’re not eligible, other alternatives may apply.

Let’s get started. Call, chat or schedule a meeting with us. We’ll help determine your eligibility and how to get started. We’ll answer any of your general questions regarding the offer in compromise program, how it works, what your obligations are and how this can benefit you.