What is the IRS Offer In Compromise?

Education & Training with Barry C. Nelson, CPA CPA NJ# 20CC01864400

The main focus of my practice is taxpayer representation involving IRS tax issues and compliance.

Offer In Compromise is a program instituted by the IRS for taxpayers who cannot pay the taxes they owe, or for taxpayers for whom it would create a financial hardship to pay the taxes they owe. An Offer In Compromise allows taxpayers to settle their tax bill for less than the full amount owed.

When considering whether to allow a taxpayer to settle his bill with an offer in compromise, the IRS will look at the taxpayer's unique circumstances, including their income, ability to pay, expenses, and any assets the taxpayers owes.

The Offer In Compromise timeline can vary according to your personal financial circumstances, but takes, on average, about four to six months. The better, more complete, and accurate your personal and financial information is the faster the IRS can determine whether they’ll accept an Offer In Compromise.

If you or someone you know is having IRS issues, please feel free to contact me at (609)410-9154 or by email at bnelsoncpa@gmail.com

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