OFFERS IN COMPROMISE

“An IRS Offer in Compromise is a settlement of the tax debt for less than you owe. It’s the most sought after relief program — and it’s generally the most heavily advertised by tax companies. While it’s true that the IRS can consider ‘settling’ your tax debts for less than you owe, it’s a very lengthy process, and there are pros & cons to consider."

-Greg Daer

A lot of people that ask about the Offer in Compromise program initially think that this can be done with a phone call to the IRS — this is NOT the case.

  • Like it or not, the IRS is a bureaucracy. It’s very common for an IRS Offer in Compromise request to take a year (or more) just to be assigned to an Offer Examiner.

  • An Offer in Compromise on the grounds of ‘Doubt as to Collectability’ can be a great option to consider if you do not (or will not in the near future) have the equity in assets, earnings, and future earning potential to pay back the back taxes owed.

  • Precision is the key: a lot of Offers are not accepted simply because they’re not prepared correctly, but there are also people who try to apply for an Offer when, if fact, they’re simply not a good candidate. We’ll help you determine if you’re a good candidate to explore an Offer in Compromise.

  • Some of the ‘fine print’ that isn’t talked about in advertisement campaigns is that the Collection Statute Expiration Dates, or CSEDs (the legal timeframe that the IRS has to collect on back taxes owed, are suspended/frozen while an Offer is being considered. If your financial condition improves while the IRS is considering an Offer, it can change your Offer, or even make it so you’re no longer a viable candidate. If the IRS accepts your Offer in Compromise, you’ll be held to the highest standard of tax compliance for at least the next 5 years after the Offer acceptance, meaning if you owe taxes on a future tax return or fail to file a tax return on time, it could rescind your Offer.

  • So, while Offers are a very viable resolution for some people to explore, there are important things to consider. We’ll help walk you through the Offer in Compromise process, draft an Offer on your behalf, and negotiate the Offer.