What is an IRS Offer in Compromise?

by Harry Galstian

May 17, 2013

An Offer in Compromise is a formal agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed.

It allows taxpayers that cannot afford to fully pay their delinquent tax liability the opportunity to settle permanently for a reduced amount.

Before an Offer in Compromise is submitted and the negotiation process begins, our Tax Attorney will perform a detailed and comprehensive review of your case to verify and confirm that your account is in compliance with the IRS. If your Offer in Compromise is not prepared or submitted correctly or if the taxpayer is not in compliance, the IRS can and will reject the Offer. This is why it is very crucial to have an experienced and qualified Tax Attorney on your side. Our Tax Attorney will negotiate on your behalf to settle your IRS tax debt for the lowest amount allowed by law. Besides a highly-skilled negotiation process, the Offer in Compromise consists of many complex formulas that determine the minimum amount the IRS will accept.

During the initial FREE Consultation, our tax consultants complete a detailed financial interview with the taxpayer, to determine if an Offer in Compromise is in the taxpayer’s best interest. If any tax relief company guarantees you an IRS tax settlement without being familiar with your entire financial situation, then it is most likely too good to be true.  Make sure to look up the company’s accreditation with the Better Business Bureau.  If your tax debt settlement is originally denied by the IRS, Direct Tax Relief will represent you within the IRS Appeals Division, with no additional fees, giving you a second chance of having your Offer in Compromise accepted.

If you cannot pay your tax debt in full the Offer in Compromise program is for you.  The Offer in Compromise program has given countless taxpayers the opportunity for a fresh start, enabling them to get back on track with their lives. Contact Direct Tax Relief and talk to our tax professionals including enrolled agents and tax attorneys. As a tax debt relief company, our tax professionals will review your situation, explore your options and recommend a solution to resolve your back taxes.