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Offer in Compromise
The IRS has the authority to settle, or compromise, federal tax liabilities of an individual or business, by accepting less than full payment under certain circumstances. The settlement agreement is called an Offer in Compromise.

The IRS may legally settle if doubt exists that you could ever pay the full amount of tax owed, or doubt exists that the assessed tax is correct. If neither of these situations are true for you or your business, but exceptional circumstances exist where collection of the tax would create an economic hardship or would be unfair or inequitable, your offer may also be considered.

Preparing a successful Offer in Compromise many time requires the specialized knowledge and experience of a tax attorney. A working knowledge of the Internal Revenue Code, Treasury Regulations, IRS policies and standard operating procedures are typically helpful. Each offer must be supported by financial statements, a valuation analysis, and income and expense statements.

Negotiating with the IRS is not the time for on-the-job training.

The entire process can take months to complete. Let your attorney spare you a lot of work and disappointment by presenting the best possible offer on your behalf.

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