What is an Offer in Compromise
So, you’re here, but you aren’t sure what an offer in compromise is. You got on Google and started typing in all of the things you could think of to try to figure out what you can do to get the IRS off of your back. You have seen the late night television commercials where companies are offering to settle your tax debt for “pennies on the dollar.” But how?
The answer is: through the offer in compromise program that the IRS has. Basically, an offer in compromise is a very formal process that you go through with the IRS to negotiate a lower amount for you to pay for the income taxes, penalties and interest you owe. Now, it isn’t as easy as calling the bank or some other person that you owe money to and negotiating a lesser amount. The IRS forces you to go through several steps and provide extensive information to them in order to prove that you actually cannot afford to pay the taxes that you owe. This is good for you. Why? Because it is based on your specific financial and living situation at the time you file your offer in compromise. It does not make any difference how much you owe the IRS – whether it is $1,000 or $100,000.
Over the coming days and weeks we will be looking into the offer in compromise program and talking about specific information that you can use while you are filing you offer in compromise. Please be sure to add our RSS feed to your feed reader so you can keep up with breaking IRS news and more and more great information about the offer in compromise process.