Services: Offer in Compromise

Resolving IRS Problems – Offer in Compromise

An OFFER IN COMPROMISE allows you to cut a deal with the IRS to pay less than your current unpaid tax plus any IRS interest and penalties. Often, clients settle their unpaid tax liability for just pennies on the dollar.

An Offer in Compromise is filed with the IRS on Form 656. Not all taxpayers are eligible for an Offer in Compromise. A thorough financial analysis must be performed to determine whether an Offer in Compromise is appropriate for you. A taxpayer's financial condition is disclosed to the IRS on a Form 433-A Financial Statement and/or a Form 433-B Financial Statement.

An Offer in Compromise is based upon many different factors including, but not limited to, the taxpayer's age, health, income, assets and liabilities. All of these items are factored into a mathematical model to determine the taxpayer's eligibility for an Offer and, if eligible, the amount the IRS may be willing to accept under that Offer to cover unpaid tax liabilities plus IRS interest and penalties.

While an attorney for the IRS, Mr. Sheehan recommended the acceptance or rejection of Offers in Compromise at the IRS District Counsel level. Since our inception in 1991, few of our Offers in Compromise have been rejected.

There are three types of Offers in Compromise: Doubt as to Liability, Doubt as to Collectibility, and Effective Tax Administration. Please choose from the following list to learn more:

• Doubt as to Liability
• Doubt as to Collectibility
• Effective Tax Administration