What is Offer in Compromise?The Offer in Compromise program was developed as a strategy for settling federal tax debt that individuals owe to the Internal Revenue Service. The goal of the Internal Revenue Service (IRS) in developing this type of debt settlement solution was to allow individuals to pay a fixed settlement amount on the current debt they owe, in hopes that they will be able to meet all future tax obligations.
Unfortunately, in order for the Internal Revenue Service (IRS) to accept your Offer in Compromise application you must meet specific criteria. The IRS estimates they currently accept only 20% of the Offer in Compromise applications submitted each year. If you are considering Offer In Compromise as a debt settlement option, it is important to discuss your decision with a qualified tax attorney who can help analyze the Offer in Compromise application and let you know if this is the best debt settlement solution for you.