IRS Tax Debt and an Offer in Compromise

Some people find themselves in a situation where they cannot pay their IRS tax debt. For example, a taxpayer may owe taxes but cannot pay because the taxpayer has little money compared to the taxpayer’s debts.

If the IRS is convinced that the IRS will probably not recover the amount owed, the IRS may make the taxpayer an offer to pay a reduced amount in a short period of time. This offer is called an “Offer in Compromise.”

An Offer in Compromise is subject to IRS regulations. Taxpayers who are evaluating an Offer in Compromise may be benefited by understanding these IRS regulations. Taxpayers may also benefit from knowing strategies for negotiating an Offer in Compromise.

A tax attorney can help taxpayers who are dealing with IRS debt or an Offer in Compromise. However, those with tax debt often cannot afford to hire a tax attorney. Fortunately, there are some good resources online for taxpayers who want to handle their Offer in Compromise without the assistance of a tax attorney.

Two articles provide some general help with an Offer in Compromise.

If you decide that you would benefit from hiring a tax attorney, I would be glad to talk with you. Please call to schedule an appointment.

Leave a Public Comment

  • Judy
    March 2, 2010, 11:14 pm

    well I have been struggling, juggling finances for many years. I am a single mom, have gone through a nasty divorce, a fiancee suicide, breast cancer,ecoli in daughter, and an ex-husband’s brain injury. I have very high house payments, shut-off notices on utilities, cannot buy grandkids anything, and have a tax lien. I have decided to absolutely try to take charge and be determined to change my life without having to get myself more in debt, so I can maybe someday retire. I am 58 and have no savings. I have a good job as a legal assistant and I can offer my legal typing, dictation services in exchange of your help to get me out of this mess. I cannot even refinance due to the tax lien. I am in uncollectible status now and have been. Back taxes years are 2001 and 2003. Amount is up to $18,000. P.S. I have good inventions (I see you are a patent lawyer too)What do you think?