Close

Tax News

IRS Offer In Compromise Program Eligibility

Share this article...
IRS Offer In Compromise Program Eligibility

IRS Offer in Compromise Program Eligibility

Question for the Taxman: How do I know if I qualify for the Offer in Compromise program?

Answer:  To find out if you qualify for an Offer In Compromise, you’ll first need to consult a qualified tax professional.

The correct way to determine if you qualify for an Offer In Compromise is to do a financial analysis to determine your Reasonable Collection Potential.  To get a Rough estimate give us a call to speak to one of our Certified Tax Resolution Specialist to see if this is a possibility for you.

NOTE:  Beware of the unscrupulous firms that will tell you they can settle your debt without at least doing a rough estimate of your Reasonable Collection Potential.  Without doing this analysis, if they tell you they can settle your debt---- HANG UP THE PHONE!

What is the Offer in Compromise Program?

There are THREE types of Offers In Compromise:

Doubt As To Collectability (DATC)

The IRS will consider a Doubt As To Collectability Offer IF the taxpayer can convince the IRS, in the remaining statutory period (10 years from date of assessment), given what the IRS COULD COLLECT based on the financial analysis, the IRS WILL NOT be able to collect the full debt.  If this is the case the IRS is willing to settle because they are convinced they will not collect to the full debt anyway.

Doubt as to Liability (DATL)

In a Doubt as to Liability Offer you are convincing the IRS that the tax liability is incorrect or in error.

Effective Tax Administration (ETA)

Effective Tax Administration Offers are RARELY accepted and are based upon extreme extenuating circumstances. This is the situation where the taxpayer COULD pay, but he or she should be allowed to not pay due to extenuating circumstances. Let me give an example of an Effective Tax Administration Offer Case.  Taxpayer is terminally ill (a few years to live, per doctors) and the only remaining asset that the taxpayer has is a retirement account that he is currently drawing on, to pay for the medications and equipment that are keeping him alive. 

In addition to the Offer in Compromise program, taxpayers with significant debt to the IRS have a number of other options such as Installment Agreement, Innocent Spouse, Injured Spouse, Audit Reconsideration, Expiration of the Collection Statute and Bankruptcy.

As the Rescue Squad for Overtaxed and Troubled Taxpayers, we solve IRS problems like yours every day. For a no-risk consultation, please call our office at 800-829-7483

Dependents or Qualifying Relatives Deductions and Credits

6 Ways to Prevent Tax Procrastination

PDF
Printable PDF

Have a Question About This Topic?

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the Terms of Use and Privacy Policy.

NEVER MISS A STORY.

Sign up for our newsletters and get our articles delivered right to your inbox.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

Client Login

 

Refer a Friend

.