Offer in Compromise

What is an Offer in Compromise?

An offer in compromise is easily described as when the IRS will make a compromise with you and your tax debt. The IRS will accept a settlement amount less than the amount of your tax debt. The amounts can vary based on your situation.

For example, we prepared an offer in compromise for a client who owed $235,000 to the IRS. We were able to get it reduced to $1,400. It’s not always that drastic however. Another client we prepared an offer for owed $249,221 initially and we were able to successful reduce it to $84,828. The client still owed a balance but the offer allowed for a substantial amount of savings nonetheless.

Our Acceptance Rate is Nearly Five Times More than Average

The IRS had a statistic a few years back that revealed how often an offer in compromise is approved by them. Not surprisingly the number was incredibly low. The IRS rejects nearly 80% of offer in compromise applications. These applications include those prepared by individuals as well as tax professionals. In other words, only 20% of offer in compromise submissions are approved. That’s not our percentage of approvals. Clients we submit for an offer in compromise are almost always accepted. In fact, the few exceptions are usually because of unforeseen issues that were not in our control. We can confidently say we are almost at 100% acceptance rate for our offer submissions.

The reason why we have such a high percentage of offer in compromise approvals with the IRS is because we don’t submit a client for an offer unless their case is deemed to be eligible only after we do our own analysis. This again goes back to our commitment of not working with a client unless we know we can help them.

During the free consultation with one of our CPAs, tax attorneys, or enrolled agents we will evaluate your tax problem to where we will tell you how we can help and what your case can potentially qualify for. You can always have comfort in knowing that we won’t take you on as a client if we cannot help you.