IRS Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. The IRS consider your unique set of facts and circumstances:
- Ability to pay;
- Income;
- Expenses; and
- Asset equity.
The IRS generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. The Offer in Compromise program is not for everyone.
More Options
The IRS doesn’t approve Offer in Compromise to just anyone seeking tax relief you’ll be required to submit a detailed financial report that itemizes your revenue streams, monthly expenses, and more to prove you are unable to afford the full debt. If approved by the IRS, Offer in Compromise conditions must be kept on your part or your settlement will be invalidated and all remaining liability will go back on your account
And keep in mind that there are other options – a compromise is not the only way to clear the IRS out of your life