The Offer In Compromise (OIC) program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay. The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
In certain situations it is possible to reduce or eliminate the taxes you owe, including penalties and interest. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done "right." If done correctly your debt may be settled for substantially less than what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
Please contact us for a free consultation if you have been assessed tax liabilities by the IRS or state tax agencies that you cannot afford to pay. We will evaluate your financial situation and condition and determine whether the Offer In Compromise program is right for you.