What You Should Know
An offer-in-compromise, commonly referred to as a “tax settlement”, is an agreement between the IRS and a taxpayer that settles a debt for less than the amount owed. Similar to installment agreements and other IRS tax relief programs, certain compliance and collectibility requirements must be met in order to qualify. In general, for an offer-in-compromise to be accepted, the IRS has to determine that it can collect more from a taxpayer through a tax settlement compared to what it can collect over the life of the remaining collection statute.
The IRS Code states: “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 §7122).
Typically, an IRS collection statute lasts 10 years. In May 2012, the IRS expanded its offer-in-compromise program under its Fresh Start Initiative to include more flexible terms, allowing more taxpayers to qualify. If you qualify, your debt may be settled for a fraction of what you owe.
How We Can Help
A proper analysis and presentation of your financial situation is key in determining whether or not an offer-in-compromise is right for you and if it will be accepted. The IRS has strict qualification guidelines and only accepts offer requests under limited conditions. Using our knowledge and experience with the offer-in-compromise program, we can assist you with qualification analysis, preparation, and submission of your offer-in-compromise to the IRS in an effort to get you the best tax settlement possible. As former IRS Collection Officers and IRS Auditors, we know how the IRS works and how to protect you and your assets. Request a FREE consultation with our ex-IRS agents here.
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For immediate assistance with an offer-in-compromise, or another tax matter, contact us today at 1-714-382-6780 for a FREE and CONFIDENTIAL consultation.
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