Offer in Compromise

The Offer in Compromise resolution option is the government’s “Let’s Make A Deal” program that allows you to settle your entire tax debt including penalties and interest for less than you owe. The Offer in Compromise essentially wipes the slate clean, allowing the taxpayer to start fresh once again on the right foot. The IRS Code states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…” (Internal Revenue Code §7122).