Offers in Compromise

By negotiating an Offer in Compromise with the IRS you can pay the IRS less than the amount you owe. There are, however, some taxpayers who cannot accept an Offer in Compromise. To determine if you are eligible for an Offer in Compromise, we conduct a comprehensive financial analysis.

There are many factors that affect an Offer in Compromise, including the taxpayer’s age, health, income, assets and liabilities. To determine whether the taxpayer is eligible for an Offer and, if so, what amount the IRS may accept, all of these items are incorporated into a mathematical model. Offers in Compromise can take different forms.

What is an Offer in Compromise?

Thousands of people whose tax debt has increased significantly have been able to reduce this amount through an “Offer in Compromise.” This method is rarely known, but remarkably effective in minimizing tax debt. In this program, you can pay a lesser amount than the full amount of taxes you owe to settle your tax debt. When you are from a low-income family, the amount can be significantly less.

Here’s how it works: The IRS is threatening you with $100,000 in back taxes. There is no money in your pocket. Your house or wages may be seized by the government.

In order to get the IRS to accept your compromise offer, you make them an offer they can’t refuse.

There are a couple of forms you have to fill out. “Let’s compromise,” you say very nicely to the IRS. I will give you $10. The rest ($99,990) is yours. I think that’s fair, don’t you?”

After a while, you wait. Breathing becomes difficult. Your prayers are answered. “Oh, okay, thanks for the crisp new Alexander Hamilton,” says the IRS. We’ll happily overlook the rest.”

In an interview with Debt.org, Professor Erin H. Stearns, director of the Low Income Taxpayer Clinic at the University of Denver’s Sturm College of Law, said, “It sounds too good to be true, but it’s true.” A debt of $100,000 may be settled for $10.

Watch out for empty promises from tax representation firms that tell you over the phone that they can get (or worse yet guarantee) an Offer in Compromise for you. Can your doctor diagnose, treat and cure a serious problem over the telephone? Of course not! A thorough financial analysis is needed to determine if you are eligible for an Offer in Compromise, just like a doctor needs to run tests to determine what is wrong. Seattle tax lawyers at IRS Trouble Solvers™ have had tremendous success in obtaining IRS Offers in Compromise for taxpayers since its inception in 1991. Warning!

• Offers Based Upon Doubt as to Collectibility
• Offers Based Upon Doubt as to Liability
• Offers Based Upon Effective Tax Administration
• Business Offers in Compromise