Offer in Compromise

An Offer in Compromise is an agreement between the IRS and the taxpayer that settles a tax liability for a payment of less than the full amount owed. It was designed by Congress and integrated by the IRS in 1992; authorizing the IRS to settle for less than what is owed in certain circumstances.

It is in the interest of the IRS to settle and therefore eliminate costly accounts that cannot be collected on, at the earliest possible time and at the least cost to the government. In many cases, an Offer in Compromise will put a taxpayer back in the system who has not had the ability to "catch up", creating a fresh start and future compliance.

The IRS statistics show that 75% of all Offers in Compromise are returned at the beginning, due to the forms being filled out incorrectly or information not being provided. Of the remaining 25% of the Offers that make it past being a "process-able offer", 10% of those are rejected for various reasons known only to the IRS. Most taxpayers overstate their income and assets, thereby allowing the IRS to reject the Offer in Compromise completely; or, the IRS asks for a much higher offer amount than would have been necessary, if the taxpayer had only had an experienced tax professional on their side. This is where our years of experience, expertise and success can work to your advantage.

Since 1996, CKTax as helped thousands of taxpayers like you eliminate tax debt, often times for 95% less that what they originally owed. Select this link to read a few of our satisfied client testimonials. We work quickly and efficiently to prepare your Offer in Compromise and tenaciously negotiate with the IRS for the lowest possible settlement amount. For over a decade, CKTax has time and time again delivered successful results in the offer in compromise arena.

Call us today at 888-894-2005 or fill out our FREE Offer in Compromise Consultation Form and a licensed tax professional will walk you through the Offer in Compromise process step by step.


More Offer in Compromise Facts:

• While the Offer in Compromise is being considered, the IRS must stop their collection action including levying any assets or wage garnishments.
  
  
• The circumstances that would allow the IRS to accept an Offer in Compromise are:
  
  
  • Doubt to Liability - This means that doubt exists that the tax amount assessed is correct.
    
    
  • Doubt to Collect-ability - Doubt exists that you could ever pay the full amount due.
    
    
  • Effective Tax Administration - The taxpayer has no doubt the tax liability exists and there is no doubt that the full amount could be collected; but an exceptional circumstance exists that would allow the IRS to consider your Offer in Compromise. It must be determined that the collection of the full amount of tax would create economic hardship or would be unfair and inequitable.

There are 3 payment plans that can be used with an Offer in Compromise:

1. Cash - (90 days or less).
   
   
2. Short Term Deferred Payment - (more than 90 days and up to 24 months).
   
   
3. Deferred Payment - (payment terms are over the remaining statutory period for collection of the tax).

An Offer in Compromise is filed in either Tennessee or New York.


Notice: As of November 1, 2003, the IRS charges a $150 processing fee for an offer in compromise.



Fill out our FREE Offer in Compromise Consultation Form now or call us at 888-894-2005 and an offer in compromise specialist will explain your options.