Should I file an Offer in Compromise?

Owing taxes can feel like a heavy burden; especially with life happening every day, and in every way.

What is an Offer in Compromise? An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. -IRS definition

Two questions you may want to consider before proceeding with an Offer in Compromise (OIC).

1. Do I know what caused the tax deficiency (taxes owed)?

2. Have I implemented the corrective action to prevent future liabilities (taxes owed)?

To answer these questions we recommend you speak with a tax professional to go over your tax filing and your income. You may also contact the IRS directly, and speak with a representative at 1-800-829-1040.

We do not recommend comparing your tax information with another individual, and following their corrective plan.

Keep in mind, you are filing an "Individual Income Tax Return": "Individual" being the key term.

The IRS has at least two free tools to help get you started:

1. Offer in Compromise (OIC) pre-qualifier tool.

2. Offer in Compromise (OIC) "how to" video.

We hope this information has helped you to see that there are free tools available to get you back on track and to help you resolve your tax delinquency.