OFFER IN COMPROMISE
IS AN OFFER IN COMPROMISE RIGHT FOR YOU?
An Offer in Compromise may allow qualifying taxpayers to resolve an IRS liability for less than the full amount owed.
Qualification is based on more than the size of the debt. The IRS evaluates your income, allowable expenses, assets, equity, ability to pay, and overall financial circumstances.
Applicants generally must have filed all required tax returns, made required estimated tax payments or payroll tax deposits, and cannot be in an open bankruptcy proceeding.
Not everyone qualifies. A careful financial evaluation is essential before deciding whether an Offer in Compromise is the right strategy.
CASE STUDY: OFFER IN COMPROMISE
EVALUATING EVERY OPTION
The Challenge
A client came to Tax Matters with a significant IRS liability that had accumulated over several years and no clear path toward resolution.
Our Approach
We carefully reviewed the client’s income, allowable expenses, assets, equity, and overall financial circumstances. Based on that analysis, we determined that an Offer in Compromise was an appropriate resolution strategy.
Our team prepared the required financial disclosures and supporting documentation and submitted a complete offer based on the client’s ability to pay.
The Result
The IRS accepted the offer, allowing the client to resolve the liability for less than the full amount owed and move forward with greater financial stability.
Key Takeaway: An Offer in Compromise can provide meaningful relief for qualifying taxpayers, but success begins with careful evaluation, accurate documentation, and thorough preparation.
An Offer in Compromise can provide meaningful relief, but it is not the right solution for every taxpayer.
Tax Matters will carefully evaluate your circumstances, explain the available options, and help you pursue the resolution strategy that best fits your situation.
Schedule a confidential consultation and let’s determine your path forward.
