You can resolve your tax liability for less than the whole sum you owe by making an offer in a compromise. If you are unable to pay your whole tax debt or doing so would put you in a difficult financial situation, this may be a viable choice. We take into account your particular circumstances and facts.
Paying capacity
- Income/ Expenses
- Equity in assets
When your offer represents the maximum we can anticipate to recover in an acceptable amount of time, we often accept your offer in compromise. When making a compromise offer, consider all available payment possibilities. Not everyone is a good fit for the Offer in Compromise program. Check the credentials of any tax expert you employ to assist you in filing an offer.
Who Qualifies
You may submit an offer in compromise form IRS application if you:
made all necessary projected payments and filed all necessary tax reports.
not engaged in an active bankruptcy case
possession of a current-year return extension that is valid
before applying, you are an employer who has made tax contributions for the previous two quarters.
If You Apply But Aren’t Qualified
If you submit an offer in settlement and we are unable to accept it, we will:
Send your application back and include the application fee.
Add any offer amount you made to the outstanding amount.
Choose a payment method.
Depending on your offering and the means of payment you select, your initial payment may differ:
Whole Sum Cash: Provide a 20% down payment on the entire offer amount with your registration. You’ll get formal confirmation from us if we accept your offer. Any amount still payable under the Offer shall be payable in five or fewer installments.
Regular Payment: Along with your application, provide your first payment. As the IRS evaluates your offer, continue to make monthly installment payments on the outstanding sum.
Recognize the Procedure
As the IRS assesses your offer:
- Your non-refundable contributions and fees are deducted from the tax obligation.
- An IRS Notification of Federal Tax Lien may be submitted.
- IRS halts more collection efforts
- The time for legal evaluation and collection is prolonged for you.
- You pay the essential sums following your offer.
- A current installment arrangement is not subject to payment.
If the IRS doesn’t decide within two years of the IRS receipt date, your offer is allowed entry.
