The Offer in Compromise is probably the best tax relief program available, as sanctioned by the IRS. If you have a tax debt that is larger than what you could reasonably afford to pay off without experiencing a financial hardship, then the IRS may be willing to settle your debt for a reduced amount through this program. They will do so with the understanding that it sometimes makes more sense for them to accept a smaller payment and resolve the tax debt for good when it is unlikely that they will ever be able to recover the entire debt. Depending on the circumstances, this smaller sum could literally be 'pennies on the dollar' compared to what they claim you owe. 

However, not all taxpayers will qualify for an IRS Offer in Compromise and the program requires a formal, written procedure whereby the taxpayer proves to the IRS that they would not reasonably be able to pay off the entire tax debt within the next 60 months. An Offer in Compromise proposal must essentially show the IRS that it is in their best interest to settle, rather than expend their resources in vainly chasing you around for years. 

The prospect of settling an IRS tax debt with the Offer in Compromise Tax Settlement program is very alluring, but do not be fooled into thinking the process is simple - or an instant giveaway. In fact, the Offer process is not even a negotiation. It must instead follow  specific guidelines to be accepted by the IRS. 

The first step in having an Offer in Compromise proposal accepted by the IRS is to make a detailed analysis of the taxpayer's income, assets and allowable expenses, while taking into account any special circumstances that may exist, such as an ongoing medical condition or support of dependents. Once this analysis is made, a tax professional can then calculate the appropriate amount to Offer the IRS as settlement for the entire debt. Determining this settlement amount (when accompanied by proper documentation to prove your case) is the key to having your Offer in Compromise accepted - if your Offer amount is too low, it is likely to be rejected by the IRS; if your Offer amount is too high, then it may be accepted, but you will end up making a larger payment than necessary. 

Professional Tax Settlements has helped thousands of taxpayers file successful Offer in Compromise proposals with the IRS, and also with numerous State taxation agencies. We will do the same for you in an accurate and efficient manner. 

Professional Tax Settlements also provides a FREE initial consultation which will help us determine if you qualify for the Offer in Compromise, and will help you explore your options for tax resolution.

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