Each year, millions of Americans fall behind on their tax obligations for many different reasons. Many people owe the IRS so much that they feel they will never be able to pay the taxes that they owe. If this sounds like you, then the Offer in Compromise may be right for you. The Offer in Compromise is a program that allows you to settle your debt for less than what you owe. It is a mathematical equation that is based on the taxpayer’s assets, income, and expenses.
Because the IRS places a greater emphasis on current compliance than on past compliance. They would rather ensure that you are a good taxpayer from this point forward than destroy your life because of some past mistakes. They are willing to forgive your old debt in exchange for future compliance. Congress created the Offer in Compromise program so that you have a chance for a fresh start.
To have an Offer in Compromise accepted, you must convince the IRS that the amount that you are offering them is as much or more than they can ever hope to collect from you on your tax bill. This means that you cannot just pick a number and offer it to the IRS. The amount that the IRS will accept on an Offer in Compromise is based upon a calculation of future income and assets.
Don’t like the convince……maybe show? You are trying to convince the IRS that the amount that you are offering is the most that they could ever hope to collect from you.