Do you owe Uncle Sam more than you can pay? Perhaps for this tax year, prior tax years, or a combination of both. Like any other creditor, the IRS will sometimes settle your debts for less than you owe, also known as an offer in compromise.
The offer in compromise is a powerful tool to resolve unpaid tax debts that you’ll never be able to pay in full.
You can qualify for an offer in compromise if what you owe in tax debts is more than:
- your equity in assets, plus
- your future (offer in compromise) income over the collection statute of limitations.
We can help you with the offer in compromise. Our first step would be to calculate your reasonable collection potential using IRS guidelines, to ensure you can potentially qualify. If you potentially qualify, we should proceed if you are also willing to commit to
- paying the required settlement amount within 24 months, and
- staying in payment and filing compliance with your taxes for the five years after your offer in compromise is accepted.
Please note that if you have sufficient assets and/or income to pay your tax debts, either all at once or over time, then an offer in compromise based on collectibility isn’t appropriate for you.
We’re at your service in this matter. Please don’t hesitate to call us if you want our help.
