IRS Offer In Compromise Settlement Program

If you owe a tax liability that you cannot afford to pay in full and require IRS representation from a tax attorney, then you may be eligible to participate in the IRS Offer in Compromise program and settle your tax debt for less than the full amount that you owe. Tax Muscle never recommends that any taxpayer attempt to submit or negotiate an Offer in Compromise on their own behalf. The qualified experts at Tax Muscle have extensive experience in the negotiation of Offers in Compromise, which has resulted in substantial tax savings for our clients.

IRS Tax Liability Compromise

The underlying concept of an Offer in Compromise is as follows: The taxpayer offers to pay as much as they can immediately afford, and in turn, the IRS agrees to settle the tax liability in full. The IRS is granted the authority to "compromise" or settle tax liabilities as long as the taxpayer meets certain financial criteria. The IRS will typically approve an offer in compromise when it becomes doubtful that the taxpayer will ever be able to pay the tax liability in full and the amount offered represents the most that they can expect to collect within a reasonable period of time.

Factors To Acknowledge - Offer In Compromise

Offers in Compromise are often an excellent deal for both taxpayers and the IRS. For example, when the IRS accepts an Offer in Compromise, taxpayers are able to clear up their tax debts and make a fresh start. Correspondingly, the IRS generally collects far more from Offers in Compromise than it would if the accounts were placed into CNC status, and equally important, the taxpayer is required to remain in compliance for the succeeding five years, or the original tax debt will be reinstated in full. About 80 percent of taxpayers with accepted Offers in Compromise remain in full compliance during this five year period.

The Offer in Compromise process is notoriously drawn out and complicated. The period between the proposal of an OIC and its acceptance by the IRS can be as short as six months in some cases and as long as two years in others. Outcomes are not the same for all taxpayers and the IRS clearly informs us that the OIC program is not for everyone. However, you can confront the IRS with confidence when you have the knowledge and experience of Tax Muscle behind you.