The IRS Offer in Compromise is a program set up to allow taxpayers with sizable IRS
debts that they will likely never be able to pay, to settle for a reduced amount - sometimes even for 'pennies on the dollar.'
The IRS Code states it as so:
"We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
The Offer in Compromise is not a negotiation though. Instead, it is a formal, written procedure whereby a taxpayer must show that it is in the best interest of the IRS to accept settlement. Think of it as a business
decision on their part: they will accept your Offer for settlement if they
perceive that they will be better off taking a reduced amount from you rather than trying to "squeeze blood from a turnip."
The IRS Offer in Compromise program can be tremendously helpful to the struggling taxpayer, but the process is not simple.
(A helpful Rule of Thumb: When it comes to dealing with the IRS,
Nothing is Simple!) Even a single miscalculation or omission could doom your
Offer to the Reject pile. In fact, many more Offer in Compromise proposals are submitted each year than are accepted.
However, professional preparation dramatically increases the odds of success.
At Sensible Solutions Tax Relief, our
Offer in Compromise acceptance rate is far higher than the IRS average, in
large part because we pre-qualify our clients to make sure that an
Offer fits their circumstances. We will never file an Offer in
Compromise for someone unless we are confident that it will be
accepted!
The key to the IRS Offer in Compromise procedure is to determine the lowest amount that the IRS will accept from you before you ever make the Offer. Sensible Solutions Tax Relief uses the same software and methodology to evaluate your case that the IRS does, and we offer a FREE initial consultation which will tell you what sort of
tax debt resolution you qualify for right up front. We take great pride in providing straightforward answers to taxpayers and bringing them REAL
RELIEF.
Even if a taxpayer does not qualify for the IRS Offer in Compromise, there are several other
programs available for back tax relief. Most taxpayers will qualify for some form of resolution or
another, so feel free to read through this website, which will help you
explore your options.
