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The Offer in Compromise program was established to grant tax debt relief to to people who cannot pay their taxes. An Offer in Compromise is not always the best option. It is important to determine if the tax debt liability can be avoided at the audit, appeal, or tax court level. Additionally, there may be ways to avoid collection of taxes that re bettern than the offer in compromise, such as bankruptcy or waiting out he collection statute of limitations.
Late night television is full of people advertising services that promise to settle your tax debt for "pennies on the dollar." These services are generally not attorneys, and are basically Offers in Compromise mills. They fill out the forms, regardless of the clients' individual situation, and make an offer. These offers are often not accepted by the IRS. The IRS has even gone so far as to release a consumer alert advising taxpayers to beware of these "pennies on the dollar" claims.
If you think you may qualify for the Offer in Compromise program because doubts about the tax liability, doubts about their ability to pay the tax debt, or undue hardship involved in paying the tax debt, it is best to have an experienced and knowledgeable tax attorney help you present your arguments. The vast majority of offer in compromise filings are rejected by the IRS and the chances of a successful petition are much better with an qualified Offer in Compromise attorney on your side.
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