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IRS Offer in Compromise

What is an Offer in Compromise?

One of the best ways to resolve your tax problems is to submit an offer in compromise. So what is an offer in compromise?

Very simply, an offer in compromise is an agreement between you, the taxpayer, and the IRS where the IRS agrees to take a lesser amount from you to settle your tax liability in full. The offer in compromise puts a final amount on what you owe the IRS. Basically, once that amount is agreed upon no more interest or penalties continue to accrue. Now negotiating with the IRS is not like negotiating with any other lender or creditor. It is not simply calling them up and asking how much they will take to settle your debt. Neither is it just sending an offer letter telling them that you will pay X dollars to settle your debt. That just is not how the IRS operates.

If you want to settle your tax liability with the IRS you have to do it their way. You have to go through the offer in compromise program and quite frankly, every person will not qualify for an offer in compromise. There are three main types of offers in compromise that you can submit to the IRS: an offer in compromise based on doubt as to collectability, an offer in compromise based on doubt as to liability, and an offer in compromise based on effective tax administration.

Offer in Compromise Help

The following articles have been written about the IRS offer in compromise process to help provide you useful information. To get more specific information about each type of offer in compromise along with specific information about the process, check out these related articles.

Types of Offers in Compromise

Offer in Compromise for Doubt as to Collectability

Offer in Compromise for Doubt as to Liability

Offer in Compromise for Effective Tax Administration

Offer in Compromise FAQs

Is My Offer in Compromise Based on How Much I owe?

Should I file Bankruptcy or an Offer in Compromise?

Filing Your Back Tax Returns Must be done before filing an offer in compromise

Submitting an Offer in Compromise

Do I have to pay money when I submit my offer in compromise?

When will I hear back from the IRS after submitting my offer in compromise?

How long with the IRS take to consider my offer in compromise?

Will the IRS Usually Accept an Offer in Compromise?

Requesting an offer in compromise after setting up an installment agreement with the IRS

Will my wage levy be released when I file my offer in compromise?