If an IRS offer in compromise costs money, why should I do it rather than just apply that money to the taxes I owe?

You should do it because the financial risk is minimal and the potential advantages are significant.

The last thing that you want to do is to pay the IRS more money than you have to pay. You don’t want to spend the money that you could use to satisfy your tax debt on fees for an IRS offer in compromise, or any other type of alternative solution to your federal tax problems.

That is perfectly understandable. However, our Oklahoma tax lawyers believe that an offer in compromise is worth considering regardless of the fee charged to suggest this type of solution to your tax problems. Here’s why:

  • If the IRS offer in compromise is accepted, then the amount that you paid as a fee to file the offer will be applied toward your tax debt.
     
  • In some cases you may not have to pay the fee. The fee is typically waived if you file a doubt as to liability claim or if you meet certain low-income eligibility guidelines.
     
  • The amount that you may be able to save on your tax liability may be significantly greater than the amount it costs to file an IRS offer in compromise.
     

Of course, an offer in compromise is not the only way to satisfy a tax problem. It may, or may not, be the best solution to your problems. For more information about your specific tax situation, please contact an experienced Oklahoma tax attorney today at 800.721.7054 to schedule an initial consultation and please read a FREE copy of our book, The Ultimate Survival Guide for IRS Problems.