Offer in Compromise

Offer in Compromise

An Offer in Compromise is the Golden Goose in Tax Resolution. It is what you hear about on all of the ads from the big National firms when they advertise “Settling for pennies on the dollar”. The good news is: this is 100% real. The bad news is: they are difficult to qualify for. But when you qualify, you are able to “offer” an amount you can afford to satisfy your entire tax liability, and it even includes the penalties and interest. And yes, the amount you pay is based on what you can afford, not the amount you owe! The program allows an eligible taxpayer to pay what they can afford to pay regardless of the amount they owe.

The Offer in Compromise is the essence of fresh start; once an offer is accepted and paid the taxpayer is then current with all their tax liabilities. We are able to determine your eligibility for the Offer in Compromise program and advise you on some strategies to become qualified, when appropriate.

The IRS will look at the likelihood that they will be able to collect the full amount owed, and they will consider the amount that you are realistically able to pay. As stated in the Internal Revenue Code: “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 §7122).

At COTTS LAW, we are very specific about the types of case for which we will apply for an Offer in Compromise – we do not submit frivolous Offers, so we have a very good “winning percentage” – our Offers get accepted at a very high rate.