IRS OFFER IN COMPROMISE
Is an Offer in Compromise Right for You?
An Offer in Compromise may allow a qualifying taxpayer to settle an IRS tax debt for less than the full amount owed. It is an option worth evaluating, but it is not available or appropriate for everyone.
The IRS considers your ability to pay, income, allowable expenses, and equity in your assets. To apply, you generally must have filed required returns, made required estimated tax payments and, if you are an employer, made required federal tax deposits. You cannot apply while in an open bankruptcy proceeding.
Tax Matters begins by reviewing your financial circumstances and explaining whether an offer appears realistic. We also discuss other available options so you can make an informed decision.
If an offer is appropriate, we help prepare the financial disclosures and supporting documents, develop the proposed offer, and communicate with the IRS during its review.
The aim is to pursue a resolution grounded in the facts—not simply to submit an application.
Evaluating Every Option
The Challenge
A client faced a substantial IRS balance that had grown over several years. They needed to know whether they could resolve the debt without paying the full amount.
Our Approach
We reviewed the client’s income, allowable expenses, assets, and equity to assess their ability to pay. Based on that review, we determined that an Offer in Compromise was an appropriate option.
We prepared the required financial disclosures and supporting documents, then submitted an offer to the IRS.
The Result
The IRS accepted the offer, allowing the client to settle the tax liability for less than the full amount owed.
Key Takeaway
An Offer in Compromise can help a qualifying taxpayer resolve a tax debt. Careful evaluation and complete, accurate documentation are essential to presenting the offer; acceptance depends on the IRS’s review of each case.
An Offer in Compromise may help a qualifying taxpayer settle an IRS debt for less than the full amount owed. It is one option, and it is not right for every situation.
Tax Matters will review your financial circumstances, explain the options that may be available, and help you identify a practical path forward.
Talk with Tax Matters to discuss your situation and the next step.
