An Offer in Compromise under IRC Section 7122 lets you settle your IRS debt for less than you owe. The IRS accepted over 17,000 offers in recent years. It is a real program with real results.
The IRS calculates your Reasonable Collection Potential: monthly disposable income multiplied by 12 or 24, plus the net equity in your assets. Your offer must meet or exceed that number. Offer less and you get rejected.
Three Grounds for an OIC
Doubt as to Collectibility is the most common. You cannot pay the full amount before the statute expires. Doubt as to Liability means you dispute the tax itself. Effective Tax Administration means you can pay but exceptional circumstances make collection unfair.
Every return must be filed. Current estimates must be current. The application fee is $205. Lump sum offers require 20% down. After acceptance, you must stay compliant for five years. We handle OICs every week.