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What Is An Offer in Compromise?

So you've been hearing about Offers In Compromise on television? Absolutely an Offer in Compromise is a real solution for many people to solve their IRS debt. The problem is it's not a valid avenue for everyone. An Offer in Compromise is a program by which the IRS looks at the amount of money that you make, the amount of assets that you hold and the amount of time that the IRS has to collect the tax debt that you owe. All of those things are taken into account in some calculations that they figure. That helps them determine whether or not you qualify for any kind of settlement at all and if so how much. So if you make a pretty healthy income and have assets, chances are you may not qualify for an Offer in Compromise. You might, but definitely you're going to want to seek the assistance of a professional before you make that determination. Don't assume that that everyone qualifies for that because everyone does not.

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