IRS Offer in Compromise

An IRS Offer in Compromise may allow a qualifying taxpayer to resolve federal tax debt for less than the full amount owed. It is a legitimate IRS tax resolution program, but it is not a general discount program and not every taxpayer qualifies.

How an Offer in Compromise Works

The IRS considers financial circumstances when evaluating whether an offer should be accepted. The analysis can involve income, allowable living expenses, bank accounts, investments, vehicles, real estate, business interests, other assets and future ability to pay.

Do You Qualify for an IRS Offer in Compromise?

Qualification requires more than simply owing a large tax balance. Filing and payment compliance generally must be addressed, and the financial information submitted to the IRS must support the requested resolution. A careful preliminary analysis can help determine whether an Offer in Compromise appears realistic before pursuing the process.

Offer in Compromise vs. Other IRS Resolution Options

If an offer is not appropriate, an installment agreement, currently-not-collectible status, penalty relief or another collection alternative may better fit the taxpayer’s circumstances. National Taxor compares available options rather than assuming an Offer in Compromise is automatically the best solution.

Professional IRS Representation

National Taxor is led by an Enrolled Agent and provides tax resolution assistance and IRS representation. We can help review the facts, organize financial information, evaluate the resolution strategy and assist with the process within the scope of the engagement.