OFFERS IN COMPROMISE
While in reality a very small percentage of tax resolution cases are actually resolved by means of an offer in compromise, this could be the right solution for you if you qualify. Be aware there are tax resolution firms out there who use the possibility of an offer in compromise as a foot in the door and take your money, only to tell you later that you do not qualify for an offer and then try to take your money again to find other resolution possibilities.
It’s all part our commitment to provide Financial Expert clients with a complete support service for every stage of life – in other words, if we can’t give you the answers you’re looking for, then you can count on us to know someone who can.
DO I QUALIFY FOR AN OFFER IN COMPROMISE?
An Offer in Compromise agreement provides a great opportunity for those who qualify. It empowers you to pay less than your desired amount owed to the IRS, which is a tremendous relief for those grappling to pay overdue business or individual taxes.
Curious if you qualify for an Offer in Compromise? Recently, the IRS developed how taxpayers can qualify for an OIC with the Fresh Start Program. That information can be found here.
How does it work?
The IRS has three qualifications that it will assess.
Doubt as to Collectibility
Doubt as to Liability
Effective Tax Administration
With this seldom approved form of an offer, the taxpayer agrees with the amount of the liability to the IRS and the taxpayer admits they do have the assets to pay in full, but it would not be fair and equitable or against public policy to collect the full amount owed.