: Offer in Compromise

Back Tax Resolution, Inc. 2700 Post Oak Boulevard, Floor 21, Houston, TX 77056  Tel. 713-437-3579

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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 5x Higher

The IRS revealed how often an offer in compromise is approved by them.  Not surprisingly the number was incredibly low.  The IRS has traditionally rejected nearly 80% of offer in compromise applications.  That number has decreased over the last year to 60% due to less stringent guidelines but the rate is still alarming.  These applications include those prepared by individuals as well as tax professionals.

 

In other words, only 40% 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.

Why We Have a High Success Rate

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.

It all begins with the free consultation we offer.  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 will only suggest realistic solutions and won't take you on as a client if we cannot help you.