If you owe back taxes to the Internal Revenue Service. There are three ways to qualify for Offer in Compromise:
- You may be able to file for an Offer if Compromise if there is a doubt about the amount of tax liability that you owe. You can work with an attorney to evaluate your tax liabilities and determine if there is any doubt that you owe the tax.
- If you are able to prove to the Internal Revenue Service (IRS) that you will never be able to pay the full amount of tax debt you owe. Under this circumstance the IRS may be willing to negotiate a reduced tax settlement amount. You will be required to submit all relevant financial information to the IRS with your Offer in Compromise settlement.
- If you can prove that paying the taxes owed would create undue hardship on your life. This circumstance is often applied to individuals who are elderly or handicapped. You must submit financial information that backs up your claim that collecting the taxes would place an unfair and inequitable burden on you.