The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
Often it is possible to fully and completely eliminate the taxes you owe - including all penalties and interest - at an enormous discount. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done "right."
If done correctly your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
An Offer in Compromise may work for you
Decrease The Amount You Owe To An Amount You Can Afford to Pay
The good news is you may qualify for the Offer in Compromise program through the IRS. What is an Offer in Compromise? An Offer in Compromise is an agreement between the taxpayer and the IRS that resolves the taxpayer’s debt for less than what is actually owed. Yes, the IRS does have the authority to “compromise” or settle tax liabilities, under certain financial circumstances. The most common circumstance is when it is unlikely the taxpayer will ever be able to pay the liability in full, and the amount offered reflects what the taxpayer can realistically pay.
The Offer in Compromise is a win-win situation for all involved – the taxpayer and the IRS. The taxpayer can finally breathe a sigh of relief knowing their tax debt has been taken care of. The IRS can find relief in knowing, in more cases than not, they collected more on the debt with an Offer in Compromise than they would have without it. Also, the taxpayer is more likely to stay in compliance when it comes to filing and paying future taxes as part of the condition of the Offer in Compromise agreement.
In fact, according to the Taxpayer Advocate Service 2007 Annual Report to Congress, the IRS collected 17 cents for every $1 owed through accepted Offers in Compromise in fiscal year 2007. In the past, IRS research shows they collected on 13 cents for every $1 owed on two-year-old debts and virtually nothing on debts three or more years old.
At One Plus Tax & Accounting, Inc, we never advise any taxpayer to deal with the IRS themselves. One Plus Tax has an experienced tax team to help negotiate an Offer in Compromise for taxpayers that qualify for the program.
The Offer in Compromise program is very complex and time-consuming, sometimes taking as little as six months and other times as much as two years. But when you hire One Plus Tax, you can be comforted in knowing that our Tax Team has years of experience dealing with the IRS. Results are not the same for all taxpayers, but you can be assured that you can face the IRS with confidence when you have our Tax Team on your side. Give us a call today and take the first step towards getting peace of mind.
Offer In Compromise