Offer In Compromise

With over 30 years of experience, we are well-versed in the legal process surrounding Offer In Compromise. In the event that you are facing serious tax debt, but are unable to set up an adequate payment plan then an offer in compromise is an option you should explore with one of our knowledgeable tax advocates.

The IRS is not required to accept your Offer In Compromise, which is why it is important that your case is presented properly to the IRS. Tax Resolution will work with you to determine the grounds for your case and build a compelling case for the IRS on your behalf.

Contact us today to schedule your free consultation.

Frequently Asked Questions about Offer in Compromise

WHAT IS AN OFFER IN COMPROMISE?

An Offer In Compromise is a program provided by the IRS to taxpayers who aren’t able to pay off tax debt. Individuals who qualify are given the chance to pay a lesser amount than what is due.

This tax program is meant to give taxpayers with substantial back taxes the opportunity to settle tax debt with a clean slate so they can remain current on future taxes.

The factors that determine whether the IRS will accept an offer include:
  • Income
  • Expenses and Equity
  • Ability to Pay

In general, the IRS will accept a payment offer that is in the best interest of the government and the taxpayer.

HOW DO I QUALIFY FOR THIS PROGRAM?

Before you can be considered for an Offer In Compromise, you must be up-to-date on tax filings and payment requirements. You also must provide current financial information so the IRS can determine if you are even eligible to make such an offer. Lastly, you must fall under one of these categories:

​1. Uncertain Liability – Is your tax really owed?

2. Uncertain Collectability – You are unable to pay this debt.

3. Economic Hardship – You must prove that debt payment would cause financial hardship.

WHAT HAPPENS AFTER I SUBMIT AN OFFER?

The IRS will perform an initial review of the offer presented to decide whether it is eligible for submission, which can include additional requests for documentation that verifies the information provided. Next, the IRS will perform a thorough evaluation of the entire offer packet.

If you are approved, tax liens are not released until the offer terms have been fully paid and completed.

WHAT HAPPENS IF THE OFFER IS REJECTED?

If your Offer In Compromise is rejected then it may be appealed within 30 days of the date on the rejection notice.