Do I Qualify for the IRS Offer in Compromise Program to Settle Back Taxes Owed?

Did you know that 1 in 6 Americans has a tax problem? That’s 26 million people in this country. At Tax Resolution Services, we get inquiries everyday from people who owe more back taxes than they can afford to pay back and they want to know how they can resolve back taxes without going broke. Our team of tax professionals often advises that the IRS Offer in Compromise program may be a tax relief solution for them. Many don’t even know that this sort of tax resolution exists! Therefore I am featuring a question about the IRS Offer in Compromise program that came to me the other day and I am posting my answer about it so that everyone may know more about it.

Question: What are my chances of succeeding in an Offer in Compromise? I owe far more than I’d like in back taxes, certainly more than I can pay back tomorrow or the next day.

Answer: Without having firsthand access to your financial information and previous tax returns, I can’t say with certainty whether an Offer in Compromise would work for you. But speaking generally, your situation does suggest you would be a good candidate for the program, and I’d urge you see a qualified tax professional.

In the meantime, I think it would help you to understand what the Offer in Compromise program is and how one qualifies. This will help you assess whether the program is right for you.

Simply enough, the IRS developed the Offer in Compromise program after discovering that chasing delinquent taxpayers can be an inefficient business. In fact, the tax-collecting agency discovered that revenue collection can be more efficient with flexibility rather than an iron fist.

Enter the Offer in Compromise. This program is designed for taxpayers who are unable to pay their back taxes and lack the prospective means to do so in the future. This could be due to business failure or personal tragedy. Whatever the cause, the IRS uses the Offer in Compromise so as not to chase yet another taxpayer who isn’t able to pay the debt, no matter how much they’d like to do so.

If you qualify, you and your tax professional will meet with the IRS and negotiate a settlement agreement that often amounts to far less than you owe. Once that is settled and paid, your IRS nightmare is over. Now, of course, you and your tax professional should first analyze your previous returns and make sure there were no mistakes in previous filings.

If you think the Offer in Compromise program may be the solution to your tax problems, give us a call at (888) 699-7630 for a free tax consultation. Even if you do not qualify for the Offer in Compromise program, we can explore other tax relief services that will provide you peace of mind without breaking your bank. Call Tax Resolution Services today (888) 699-7630!

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