4 Things to Think About When Drafting an Offer in Compromise

Many of our clients are in a tough spot. They had to decide whether to pay their federal income taxes or use the money to provide necessities for their family here in Tulsa. It is understandable that they choose to provide food, shelter, and clothing for their family rather than pay their tax obligation. However, it does not change the fact that they have overdue taxes that the Internal Revenue Service (IRS) wants to collect. Accordingly, it is our job to help our clients resolve their IRS problems. For some of our clients, that means filing an offer in compromise with the IRS.

But First, There Are Some Things to Think About

Before a taxpayer files an offer in compromise with the IRS, it is important to consider:

  • Whether it is the best solution. Is this the best you can do? Is there another solution that is better for you?
  • Whether you can comply with the terms of the offer. Do not make an offer in compromise if you cannot follow through with its terms.
  • Why you are doing this. Have you thought it through? Do you have a clear goal in mind and does filing an offer in compromise further that goal?
  • Whether you should call a lawyer. Do you need help making a decision about how to proceed, understanding your legal rights, or drafting an offer in compromise?


Once you consider these factors then you will be closer to making an informed decision about resolving your tax debt and moving forward with your life.

Want to Know More?

An offer in compromise is only one of the alternative solutions available to you as you try to resolve your outstanding tax issues. For more information about current tax issues, please listen to Travis Watkins’ weekly radio show. You can hear it on KTOK AM 1000 at 1 p.m. on Sundays or on KRMG AM 740 at 4 p.m. on Sundays. You can also listen to previous shows right from our website.