Top 7 Facts About the IRS’s Offer in Compromise Program

Do you have an unpaid tax debt?  If so, you have probably heard the radio or TV commercials about settling your tax debt for less than the amount owed.  These advertisements are referring to the IRS’s offer in compromise.  Here are a few things you should know about this program if you are thinking about submitting an offer in compromise:

1.    An offer in compromise is a legal agreement.  It can result in your unpaid tax liability being paid off for less than you owe in tax. 

2.    The offer in compromise can be used to settle just about every kind of tax debt, including income taxes, employment taxes, trust fund and other penalties, etc.

3.    There are three types of offers that can be made.  Most offers are made based on doubt as to collectibility, which means that you do not have sufficient assets or income to pay the taxes. 

4.    You have to make a partial payment with your offer, which can be paid over a maximum of a 2 year period. 

5.    Your tax debt will continue to accrue penalties and interest while your offer is pending.

6.    You cannot qualify for an offer if you have a pending bankruptcy matter.

7.    Do not expect to receive tax refunds for the current tax year while your offer is being considered by the IRS, as the IRS will keep them.  

For qualified taxpayers, the IRS’s offer in compromise program can be a great way to get a “fresh start.”  Call today to see if you qualify.  You can find out more about us at www.irstaxtrouble.com or by calling us at 713-909-4906.