An IRS Offer-In-Compromise is an IRS program which allows a taxpayer to pay a lesser amount to the IRS than the amount actually owed.

There are three ways to qualify for an Offer-In-Compromise:

1. Inability to Pay
2. Doubt as to Liability
3. Effective Tax Administration

The most common reason an IRS Offer-In-Compromise is accepted is for inability to pay. In order to get an offer accepted for this reason, you must prove to the IRS that doubt exists that the amount owed could ever be paid in full.

In order to get an offer accepted for doubt as to liability, you must show the IRS that doubt exists that the assessed tax is correct.

For an offer to get accepted using effective tax administration as the reason for qualifying there must be no doubt that the amount owed could be collected and no doubt that the assessed tax is correct, but an exceptional circumstance exists that allows the IRS to consider your offer. To qualify under this basis, you must demonstrate to the IRS that the collection of this tax would create an economic hardship or would be unfair and inequitable.

At Consultax, we will prepare your Offer-In-Compromise, submit it and represent you from start to finish, regardless of which reason you qualify under!

When it comes to offers submitted on the basis of inability to pay, we recommend that you have us prepare an Offer-In-Compromise Analysis first. This analysis enables us to get a financial picture of your chances of having an offer accepted. Since an offer is very time consuming from start to finish, having an analysis done for a much smaller charge than the offer itself could save you a lot of money if it turns out from the analysis you're not a good candidate. If it turns out from the analysis that you are a good candidate, we'll be happy to apply the charge for the analysis to the cost of the offer.

We charge $375 to prepare a standard Offer-In-Compromise Analysis and $525 to prepare a self-employed individual's Offer-In-Compromise Analysis (being self-employed is defined as having either a sole proprietorship, partnership, S-Corporation, or closely-held C-Corporation). As stated previously, we will apply the charge for the analysis to the cost of the offer, should you decide upon the completion of the analysis to submit an offer.

We charge $2,250 for a standard Offer-In-Compromise and $2,750 for the self-employed individual's Offer-In-Compromise. The reason for the additional amount charged to prepare an offer for the self-employed is that these offers require a great deal more financial information related to the self-employed individual's business and, as a result, a much more time is spent on both the preparation and negotiation of the offer.

Are you ready to put your IRS troubles behind you? Go to CONTACT US now and we can get started right away!