Offer in Compromise

An Offer in Compromise is a settlement for payment of your tax debt for less than it really is. The acceptance rate has climbed since the Fresh Start initiative to around 40%.  That still leaves 60% of offers that are not being accepted which is a large number. But, don’t let the statistics deter you from making an offer.  We can assist you in bringing the rate of acceptance up to a much higher percentage simply by being thorough, prepared, and organized while hiding nothing.

Contrary to popular belief, the IRS is willing to take an “offer in compromise” as long as you have all your financial information complete, with full documentation and backup in an organized and easily entreated manner.  It is a matter of showing what your Reasonable Collection Potential (RCP) is, then the IRS will seriously look at working a compromise deal.  This is not an overnight process, so be prepared for the average evaluation time for an offer in compromise to be around 6 months.

There are two types of offers:

Lump Sum – This is paid off within 5 months of notice of acceptance with five or fewer installments. There is a $186 application fee and a 20% deposit.

Short Term Periodic – This is to be paid in more than five months, but within 24 months of the date the IRS received the offer, and is payable in six or more installments. The application fee and the first proposed installment must be made when the offer application is sent in. Monthly payments need to be made while the offer is under consideration, and if accepted, monthly payments continue until offer is paid in full.

We are here to get you in the best possible position to have a successful offer in compromise and enlighten you with more details on putting together the offer.