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Flat Fee Tax Resolution Services
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  • Services
    • Tax Preparation
    • Tax Resolution
    • Bookkeeping
    • Downloadable Forms
  • Fees
  • About
  • FAQs
  • Where's my refund?
  • Contact Us

OFFER IN COMPROMISE

An offer in compromise allows you to settle your tax debt for less than the full amount you owe.  It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.  Not everyone qualifies for the offer in compromise program.  We review your unique set of facts and circumstances to evaluate if you would qualify for the program or if other payment options are better suited for your situation.  When evaluating your offer we will review the following:
  • Income​
  • Expenses
  • Asset equity
The IRS generally approves an offer in compromise when the amount offered represents the most the IRS can expect to collect within a reasonable period of time.  Before filing an offer, you must be current with all filing and payment requirements. Also, you are not eligible for an offer in compromise if you are in an open bankruptcy proceeding. Your offer is submitted with a $186 application fee and an initial payment varies based on your offer and the payment option you choose:
  • Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
  • Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
While your offer is being evaluated the following is true:
  • Your non-refundable payments and fees will be applied to the tax liability
  • A Notice of Federal Tax Lien may be filed
  • Other collection activities are suspended
  • The legal assessment and collection period is extended
  • Make all required payments associated with your offer
  • You are not required to make payments on an existing installment agreement
  • Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date
We provide tax relief across the United States
Call Toll-Free 877-522-1800
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