STGSILVER TAX GROUP
800-778-2741
Open 24 hrs / 7 Days A Week
Real Tax Attorneys For Real Tax Issues

Fast Action. Proven Results.

START WITH A FREE CASE EVALUATION

Offers in compromise and tax debt

There are certain instances where you can settle a tax debt for less than what you owe through an offer in compromise. However, this is not a simple matter.

The IRS has a particular procedure they follow when it comes to offers in compromise, and they also have tremendous discretion on whether to approve such an offer. Generally, the IRS will only accept an offer to compromise if you met certain criteria.

This criterion for an offer in compromise includes:

  • You have filed all necessary tax returns
  • The IRS already sent you one bill concerning your tax debt
  • You have completed making your estimated tax payments for the year (including payroll deposits if you are a business owner)

When making an offer to compromise, the IRS requires you provide an acceptable grounds for proposing the offer to begin with. The IRS is more likely to accept an offer to compromise if collection of the full tax debt proves to be challenging.

You may also be able to convince the IRS to accept the offer in compromise if you can demonstrate paying the tax bill in full will result in economic hardship for you. And there are rare circumstances where the IRS will accept such an offer if you are able to demonstrate that you should not have to pay the owed taxes.

It is important to note that an offer in compromise involves filling out a substantial amount of paperwork. Paperwork includes Form 656 where you will state your official grounds for requesting an offer to compromise, and whether you wish to make payments on installments or in lump sum.

Other paperwork includes Form 433-A and Form 433-B (when making an offer to compromise concerning business taxes). While there is a formula that accompanies Form 433 regarding how much you may wish to offer, this formula amount may be higher than you wish to pay. In that case, you may have to plead to the IRS for a lower offer amount due to your special circumstances.

Since the IRS hardly ever makes things easy for taxpayers, working with an attorney who understands how the IRS operates may be necessary.

No Comments

Leave a comment
Comment Information

When you hire us, we can help: you:

  • Obtain emergency relief from IRS actions
  • Stop the IRS from garnishing your wages
  • Prevent levees from being placed on your bank accounts
  • Keep tax payments and penalties from spiraling out of control

Phone Answered 24/7

We are always available to answer your questions and put your mind at ease.

Call us today at
800-778-2741 for a free initial consultation

Competitive Pricing

We offer flat fees that fit your needs and your budget.

Read Our Pricing FAQ

What Past Clients Say About Us

I know I won't be getting those frightening letters anymore thanks to Chad Silver - such a weight off my mind!” - A. Gould, Ohio

Read More Testimonials

A Real History of Success

IRS debt of $682,437, Attorney Silver and his team negotiated the Debt down to zero.

View More Results

You Can Fight The IRS And Win. We Can Help.

No matter where you are in the process, we can help you make the best of your situation. Call us toll free at 800-778-2741 for a free case evaluation.

Get A Free Consultation »
PRACTICING TAX LAW NATIONWIDE

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.

Back To Top