How to Reduce Your IRS Debt with Offer in Compromise
An Offer In Compromise, occasionally referred to incorrectly as Offer and Compromise , is an agreement between a taxpayer and the Internal Revenue Service that resolves a taxpayer's Tax Debt.
If taxpayer is unable to pay his or her tax liability in a lump sum or through an installment agreement, and has exhausted the search for other payment arrangements, the last option would be to file an Offer In Compromise. The objective of the OIC (Offer In Compromise) program is to accept a compromise when it is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.
(The IRS description of the Offer In Compromise program can be found here.)
Things to Consider
The IRS has the authority to settle or compromise federal tax liabilities by accepting less than full payment under certain circumstances, including:
If you have outstanding tax debt and are looking for Tax Relief, consult with an experienced tax attorney to see if you qualify for an Offer In Compromise.