What is an IRS Offer in Compromise?
An Offer in Compromise is an IRS tool that allows us to settle your tax debt for less than the full amount you owe.
How does an Offer in Compromise work?
The IRS doubts your ability to repay your tax debt in full, but they want to collect something from you. They look at how much you owe, how much (they think) you can truly afford to pay, and how much time they have left to collect the tax bill to decide what percentage of your tax debt you should pay back.
Do I need a lawyer to file an Offer in Compromise? Can’t I do it myself and save myself money?
If you have a very case and you are really good at following rule and procedures, then sure. Otherwise, you will likely find frustration and may set yourself back. The main reason in that an Offer in Compromise is very much like an audit on your income and assets. You cannot expect the IRS to take your word that do not have the abiltiy to full pay your tax debt. You have to prove it.
Often, people who do have an Offer in Compromise accepted through their own work ended up offering the IRS way too much money. There is a reason the IRS jumps at certain offers. The IRS benefits all too often when taxpayers don’t have a good legal team behind them. By hiring us, many of our clients have saved money…sometimes incredible amounts.
How much can you save me with an Offer in Compromise?
There is no magic number or percentage, and if anyone promises you anything different…run! We are never quite sure what the IRS is thinking. We have dealt with a case where a taxpayer owed about $200,000 and we negotiated that debt down to $50. But we know we can’t tell every person that walks through our doors that we can reduce their tax debt by 99.9%; it’s just not realistic. It’s our job to paint a benefical, yet realistic picture of our finances to the IRS so they don’t take more than you can afford.
Should I use the Offer in Compromise pre-qualifier on the IRS page?
Not if you want an answer that is helpful. Seriously, we find the pre-qualifer is a waste of tim that can lead to the wrong result. We have had offers that were accepted, yet when we plug all the information into the IRS pre-qualifier, the pre-qualifier said REJECTED! Our clients are sure happy we don’t value the pre-qualifer one bit.
Can you appeal an Offer in Compromise rejection?
YES! The IRS can make mistakes. And certain Offer in Compromise offices around the country seem to relish in taking wrong positions. We routinely have to correct an Offer in Compromise Exmainer who insisted it on doing it “his way” and not in accordance with the law. Appeals is a great place to have the law applied no matter how much it upsets an IRS employee.
How do you get my Offer in Compromise approved?
First, we make sure you’re eligible. Next, we substantiate your offer and provide evidence to support our offer. We ensure your submission is reasonable based on your actual ability to pay. While we can’t say we have a 100% acceptance rate, we are close to about 98%. The overall acceptance rate for taxpayers that submit offers themselves is about 30%.
Sometimes, we may even find other options that will work better for you. We have a proven track record of success in helping thousands of taxpayers dig out of years, even decades of tax problems.
Contact us if you need help. Call us at 888-727-8796 or email info@irsmedic.com.
