Offer in Compromise

What is an offer in compromise?

This tools allows an individual to settle a tax debt at a lower amount than the original amount due. Based on certain criteria, we – your tax consultants or IRS representatives – can reach an agreement with the IRS that can reduce your tax liability; often this is based on financial hardship and circumstances that make it harder for individuals to pay their taxes.

One of the most crucial aspects of reaching an agreement is to ensure that you are legible. Every situation is different, and as a result the course we help our customers take when dealing with the IRS varies greatly. However, we can confidently say that you will receive our complete focus and dedication in getting you a favorable result.

What determines the sum will the IRS settle for in an offer in compromise

It’s important to mention that not every submission for an offer in compromise receives an IRS approval. Approximately 60% of offers are rejected; however, that still leaves 40% of offers that are ultimately accepted. The government uses a formula to determine if your case fits the criteria for acceptance, and it also looks at installment agreements as an alternative.

What determines whether your offer in compromise will be accepted?

The first and most important aspect is that you work with a team that is knowledgeable and experienced. Your tax representative has to understand the IRS process, laws and tax codes extremely well. Additionally, your tax consultant should take into account your entire tax and financial status in order to suggest the best course of action.

We’re one of the best teams for tax representation, so give us a call and we’ll help you determine whether an Offer in Compromise is the best way to move forward. Call 623-334-1400.