An offer in compromise is an agreement between a taxpayer and the IRS that settles a taxpayer's liabilities for less than the full amount due. The offer in compromise program requires an in-depth investigation of a taxpayer's ability to satisfy an outstanding balance with the IRS. A successful offer in compromise requires an in-depth understanding of, and full compliance with, complex guidelines and procedures.
Whether your offer is accepted will depend upon your ability to pay — the IRS has certain formulas relating to your income and expenses. If your assets and income are less than the amount you owe, or if you can show that paying the debt would be an economic hardship for you. Other exceptional circumstances may also be considered. The IRS has an online pre-qualifier tool, but it is best to seek advice from an experienced tax attorney, who can also help you ensure your offer is correct and complete.
The lawyers at Robert J. Fedor, Esq., L.L.C., are well-versed in the IRS offer in compromise program, and spend the necessary time with clients to educate them on the process. Having this knowledge and experience on your side can make a difference in whether an offer in compromise is accepted.