How the Offer in Compromise Works

You and the IRS acknowledge that there is no reasonable way for you to fully satisfy your tax debt. This generally involves showing that you do not have enough income or valuable assets to pay the full amount owed.

• You offer to pay the IRS the highest amount you can reasonably afford, even if that amount is only a small percentage of your total tax bill.
• If the IRS agrees that your offer represents the most they could realistically collect from you, they may accept the compromise and reduce your tax liability to the amount you offered.
• Once you complete payment of the agreed amount, the tax debt is considered settled, even if the amount paid is only a small fraction of your original tax debt.

Getting Help with an Offer in Compromise

The acceptance rate for an OIC submitted without professional guidance is typically low due to errors, omissions, or incomplete documentation.

To improve your chances of acceptance, it is wise to seek help from a tax resolution professional. Our team of experienced and trusted tax advisors will ask detailed questions to determine whether this is the best solution for your tax debt.

Tax debt may be challenged or resolved lawfully for any of the following reasons:

• Doubt as to Liability – There is uncertainty about whether the assessed tax is correct.
• Doubt as to Collectibility – There is uncertainty about whether the taxpayer will ever be able to pay the full tax debt.
• Effective Tax Administration – There is no doubt that the tax is valid and collectible, but exceptional circumstances support consideration of the taxpayer’s offer.

For the highest probability of successfully securing an Offer in Compromise, it is best to work with a qualified tax resolution expert.

Five Stone’s trusted tax attorneys and accountants have extensive experience preparing, submitting, and resolving these cases. Call our office today, and we will answer your questions and provide options to help you achieve the best possible outcome.