What Is The IRS Offer in Compromise Program?
The Offer in Compromise program is the IRS version of “Let’s Make A Deal.” An offer in compromise allows you to settle your tax debt for less than the full amount you owe. Qualifying for an offer in compromise settlement can save you thousands of dollars in taxes, penalties, and interest. An offer in compromise is an agreement between you, the taxpayer, and the IRS to settle your tax liabilities for less than the full amount owed.
It may be an excellent option if you can’t pay your full tax liability or if doing so creates a financial hardship. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The following is the set of facts and circumstances that the IRS considers in deciding whether or not to accept your offer:
- Your ability to pay
- Your income
- Your allowable expenses
- Your asset equity
IRS Debt Forgiveness
The IRS generally approves an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. If your offer is accepted and you pay the agreed offer amount in full, your IRS debt is forgiven. The Offer in Compromise program is not for everyone.
Eligible for Tax Relief
Before the IRS can consider your offer, you must be current with all tax filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding.
Beware of advertisers who claim tax debts can be settled through the Offer in Compromise program for “pennies on the dollar.” The Offer in Compromise program is very complex and time consuming, sometimes taking as much as two years to complete. Remember that everyone does not qualify for an offer in compromise.
Tax Help Advisors, LLC has the expertise and experience in working with the IRS to help expedite and take the stress out of the process. As stated, the Offer in Compromise program is not for everyone, but with the right set of circumstances its can be the very best solution. One of our licensed CPAs or Certified Tax Resolution Specialists will determine if the Offer in Compromise program is right for you.
Call us today at (704) 912-4002 to schedule your consultation.
IRS “Let’s Make a Deal” Program
The IRS generally approves an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time.