An Offer in Compromise Can Reduce Your IRS Tax Debt
An Offer in Compromise is an agreement between the taxpayer and the IRS that settles a tax debt for less than the full amount owed. Once the offer is accepted all federal tax liens, levies, and garnishments are released.
The IRS will generally accept this plan if it believes you will not be able to pay the entire tax debt before the expiration of the ten year statute of limitation for collection. Your ability to pay is based upon your future income and expenses, and your total equity in assets. The expenses allowed for purposes of computing ability to pay are subject to IRS living expense limitations. This can make it difficult to qualify for the program. Furthermore, you must be current with all filing requirements.
With an experienced and skilled tax attorney you can significantly increase your chances of qualifying for this program. Kresch Tax Resolution Services will determine whether you qualify for an Offer in Compromise and will negotiate the best settlement allowable under the program.