Offer in Compromise: Settling Taxes For a Fraction
The IRS has a program called the Offer in Compromise that allows the IRS to compromise outstanding tax liabilities with a financially burdened tax payer for often less than half of the amount they owe to the federal government. When the IRS accepts an Offer in Compromise they allow the tax payer to pay what they can afford and the remaining balance is wiped clean. The tax payer is then said to be in good standing with the IRS again.
The IRS allows individuals to settle their taxes owed for less because they realize that when they allow tax payers to voluntarily pay a fraction of what they owe it is preferable to chasing down people and forcing them to pay through enforced IRS collections. Typically if the IRS does use forced collection mechanisms they will end up with less money after paying the expenses of the IRS collectors.
Offer in Compromise Requirements For Qualification
The IRS only allows individuals that meet specific requirements to compromise their taxes through the the OIC program. There are three different types of circumstances in which a taxpayer will be considered for an offer in compromise.
Offer in Compromise Required Documentation
Filing for an offer in compromise requires an extensive amount of documentation. All required documents must be filed in order for your filing to even be considered.
Paying for Your Offer in Compromise Settlement
The IRS allows three different ways to pay for your settlement once the OIC is accepted. You can choose from the three different methods depending upon your current financial situation.
Offer in Compromise FAQ
Answers to the most common questions regarding the offer in compromise program with the IRS.
Appeal an Offer In Compromise That Was Rejected
Understand how to appeal an Offer In Compromise and understand some reasons why an OIC could be rejected.
Offer In Compromise Help - How our OIC Service Works
Our Tax Partners will prepare all documents necessary to negotiate for a settlement with the IRS that is less than the total amount you owe.