Offer in Compromise / Tax Relief – An offer to the IRS to lower the total tax liability owed by the taxpayer due to financial constraints. This is a very popular solution advertised by most firms, but not available if the taxpayer has the ability to pay the debt. People think the best time to make an Offer is when they’re financially sound. Actually, the best time to make an Offer is when they’re financially distressed because the IRS usually accepts OIC’s when they otherwise could not expect to collect the full amount owed. One other caveat, if the IRS accepts your OIC, you must remain current for five years by filing on time and paying timely otherwise the IRS can revoke your OIC.
