I often receive phone calls that begin with the caller informing me they want one of those “cents on the dollar” settlements with the IRS. Unfortunately, after a brief discussion with them, it is obvious that they don’t qualify for the ‘Offer In Compromise’ settlement that is so highly touted in the ads for tax resolution companies.
“We generally approve an offer in compromise when the amount you offer
represents the most we can expect to collect within a reasonable period of time.
Explore all other payment options before you submit an offer in compromise.
The Offer in Compromise program is not for everyone.
If you hire a tax professional to help you file an offer,
be sure to check his or her qualifications.” Per the IRS Website
Gary LaRoy is a practicing Enrolled Agent, representing individuals before the IRS and guiding his clients to the appropriate resolution of their tax issues while continuing to prepare taxes for small to medium size businesses.
While there are extenuating circumstances that can sometimes affect the IRS evaluation,
the starting point is always the IRS standards, which are published on the IRS website.