Offer In Compromise

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Sometimes, even after exhausting every effort, a taxpayer is unable to fully pay their tax debt. Since the 1860s, taxpayers have had the ability to compromise and settle deficiencies with the US government as a final resort, according to Stephan and Cohen (2017). The key to this arrangement is to be honest with the IRS and to provide factual proof of your inability to pay the tax debt. The IRS calls this inability “Doubt as to Collectibility.”

 

Beachside Bookkeeping & Tax, LLC determines the offer in compromise that is in the best interest of both the IRS and the taxpayer. The offer in compromise is often the lowest amount that the IRS will accept to settle the tax debt. If accepted by the IRS, your tax debt may be settled for 5-15% of what you currently owe. There is no pre-determined bottom limit that the IRS will accept to settle your debt, especially if your offer is correctly managed. Schedule a call to discuss how we can help.

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Resource: Stephan, P. & Cohen, M. (2017). The Ultimate Guide to Tax Resolution (8th ed.). Tax Resolution Institute Publications.