Offers in Compromise | Learn if You Qualify

If you are facing extreme tax debt, you may be able to wipe your slate clean by reaching a settlement agreement or an Offer in Compromise with the IRS. However, while this settlement plan is helpful for many individuals who cannot pay their tax debts, the IRS believes that many taxpayers have the ability to repay the full amount they owe and often refuses many Offers in Compromise.

Despite this low acceptance rate, BC Tax has helped many clients at our main headquarters in Colorado and throughout the United States negotiate an IRS Offer in Compromise and successfully secure relief from their back tax burden. Let BC Tax help you overcome tax debt today.

What Is an Offer in Compromise?

An Offer in Compromise is a program that helps taxpayers settle their debts, often for less than the total amount owed, provided they can prove they lack the financial means to repay their debts.

The Offer in Compromise tax relief process begins with the taxpayer filling out Form 656 to make an offer to the IRS. It’s important to note that taxpayers can’t just offer any amount they wish as a settlement. The IRS will consider factors such as the value of your assets, anticipated future income, and your financial situation after filling out Form 433-A to determine an accurate offer.

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How to Get the IRS to Accept Your Offer in Compromise

Because taxes are vital for government and public expenses, there are many strict qualifications regarding eligibility for a tax settlement. Before you make an offer to the IRS, check your eligibility to understand what factors the IRS will take into account when examining your case. The IRS will only consider an Offer in Compromise for the following reasons:

There is a valid reason to question if the amount the IRS determined you owe is correct.
Your assets and income are less than what you owe, leading to doubt if the debt is fully collectible.
The amount of debt you owe is correct, but you cannot pay the debt without economic hardship.

Signs You’re a Good Candidate for the Offer in Compromise Program

The IRS has a pre-qualifier tool to determine if taxpayers are good candidates for the Offer in Compromise program. In addition to being able to pay the settlement amount and providing an accurate collection potential, you can increase the likelihood of the IRS accepting your offer if you:

File current tax returns to provide the IRS with updated financial information.
Pay all required fees on time.
Submit all payroll taxes in a timely manner if you are a business owner with employees.
Delay declaring bankruptcy until you go through the Offer in Compromise process.

Next Steps After Receiving an Answer From the IRS

If the IRS accepts your Offer in Compromise, you will need to comply with all the terms listed in your agreement. By failing to comply with the agreement, you open up the possibility of the IRS suing you for the original amount of the tax debt in addition to penalties and interest.

Choose BC Tax for Your IRS Debt Settlement Services

Through BC Tax’s IRS Offer in Compromise services, our expert team has helped individuals and businesses across the country effectively settle their debts and save thousands of dollars.

Call us today at 800-548-4639 or fill out our contact form to schedule a free consultation or learn more about our service offerings!

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Janet Kleyn

04:49 25 Oct 22

I have worked with Megan Bridge of BC Tax for more than 10 years. Megan has provided invaluable advice and counsel. She handled all representation... for us with the IRS and negotiated a very positive agreement. Megan always explained the options and gave her recommendation. Megan made a challenging situation much easier.read more

Tiffany Hudson

15:14 21 Oct 22

BC Tax has the Midas touch with tax returns. Every detail was thoroughly reviewed with me and I got the biggest refund I’ve ever gotten in my life. I... felt very comfortable placing my trust in them and it paid off big.read more

Enrik Bogdani

15:01 21 Oct 22

What can I say other than they are a complete joy to work with. Communication is a big deal when dealing with such a serious overwhelming problem. BC... Tax was extremely helpful and very diligent with the whole process. They will explain everything A - Z and will actually take the time to make sure you understand whats going on. My team worked its tail off for me and Im very impressed with the results.read more

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