Why set up an Offer in Compromise?
An offer-in-compromise will reduce your IRS debt. It is considered an alternative payment to pay back taxes, avoiding a lien. Qualifying for an offer-in-compromise settlement can save you thousands of dollars in taxes, penalties and interest. This settlement is an agreement between a taxpayer and the IRS to settle the taxpayer’s tax debt for less than the full amount owed. If the IRS believes that the tax debt can be paid in full in one lump sum or through a payment agreement, they will not agree to an offer-in-compromise.
The offer-in-compromise program is very complex and time-consuming, requiring the aid of a tax professional. If you are faced with back taxes and are interested in seeing if an offer-in-compromise is right for you, Spectrum Tax Relief can help.