An Offer in Compromise is a resolution made between a taxpayer and the IRS (or other taxing agency) wherein the agency agrees to accept payment of only a percentage of the debt owed in order to settle the case. In many instances, an Offer in Compromise is an advantageous arrangement for both the client and the IRS. This situation occurs most frequently when it is unlikely that the taxpayer will ever be capable of paying off the entire liability, or when there is question about the validity of the amount owed. The compromise usually focuses on the amount the taxpayer is realistically able to pay. Payment is made either as a lump sum or through an installment agreement.
Preparing and submitting an Offer in Compromise is an intricate process requiring tremendous knowledge of IRS procedures and regulations. Often, the fine line between acceptance and rejection of an Offer lies in the preparation of the documents. Our highly qualified tax controversy team will lead the process, using their direct contacts with IRS representatives to negotiate a fair and reasonable Offer in Compromise on your behalf.