A MESSAGE FROM OUR LEAD ATTORNEY
You’ve heard the ads telling you that the IRS will settle your debt for “pennies on the dollar.” Similar ads advertise “Tax Forgiveness ” and “Fresh Start” programs. These commercials are referring to the IRS Offer-in-Compromise program. An Offer in Compromise (also known as an Offer or an OIC) is a program where the IRS will accept less than your total tax liability as a way of settling your debt.
The Offer is not for everyone. In fact, many taxpayers are not good candidates for this program. The IRS has an Offer-in-Compromise Pre-Qualifier, which can be used as a guide for determining eligibility. However, even this tool does not have the ability to make a final determination. There are many determining factors for Offer acceptance. For example, some of the items the IRS analyzes are future earning ability, available assets and disposable income.
Typically, the approval rate for Offers is anywhere from 35% to 42%. There is a deposit and application fee required for most taxpayers. Not to mention, fees if you hire a professional to assist with the Offer. These fees can range anywhere from $3,000 to over $5,000. As you can see applying for an Offer can get costly, and while no one can guarantee acceptance of an Offer, a trusted professional with your best interest at heart can ensure that you are at least a qualified candidate.