Both taxpayers are retired and their only income is social security.

They had been in a $500/month installment agreement and got a notice their tax liability had increased. They came to us to see if they could make an offer in compromise. They had recently inherited a home with no encumbrances. The equity in the home would full pay the debt so a "garden variety" Doubt As To Collectibility Offer In Compromise was not their best option.

We submitted a lesser-known (and rarely granted) Effective Tax Administration (ETA) Offer In Compromise and argued that making the taxpayer take out a mortgage on the home would cause a devastating economic hardship. It would prevent them from being able to pay basic, necessary living expenses.

The IRS agreed and offered to settle for $950 on a $13,196.59 liability. That's approximately a 93% reduction!