OFFER IN COMPROMISE
Can You Settle Your IRS Tax Debt for Less Than You Owe?
You may have heard advertisements promising to settle IRS debt for “pennies on the dollar.”
The reality is different.
The IRS Offer in Compromise program can allow qualifying taxpayers to settle tax liabilities for less than the full amount owed, but qualification depends on specific financial and legal criteria.
Do You Qualify for an Offer in Compromise?
The IRS generally evaluates factors such as:
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Income
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Necessary living expenses
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Bank accounts
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Investments
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Real estate equity
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Vehicles and other assets
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Future ability to pay
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Tax filing and payment compliance
Foxworth Tax Defense performs a financial analysis before recommending an Offer in Compromise.
Our Offer in Compromise Services
We can:
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Evaluate potential eligibility
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Analyze financial information
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Calculate a potential offer
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Prepare required IRS forms
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Organize supporting documentation
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Submit the Offer in Compromise
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Communicate and negotiate with the IRS
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Respond to requests for additional information
Wondering whether you qualify? Schedule an Offer in Compromise evaluation with Foxworth Tax Defense.
FAQs
What is an IRS Offer in Compromise?
An Offer in Compromise is an IRS program that may allow qualifying taxpayers to settle a tax liability for less than the full amount owed.
How does the IRS determine whether I qualify?
The IRS considers factors such as income, allowable expenses, assets, equity, ability to pay, and compliance with applicable filing and payment requirements.
Is an Offer in Compromise really “pennies on the dollar”?
There is no standard percentage that applies to every taxpayer. An offer is based on the taxpayer's particular financial circumstances and applicable IRS rules.
Can I apply for an Offer in Compromise if I haven't filed my tax returns?
Taxpayers generally must satisfy applicable filing and compliance requirements before the IRS will consider an Offer in Compromise.
How long does an Offer in Compromise take?
Processing times vary based on the case, IRS workload, documentation, and whether additional information is requested.