Offer In Compromise Settlement Terms

Contrary to popular belief, you do not have come up with all of the funds when the Offer in Compromise is accepted. New IRS Offer in Compromise policies allow several options for making payments on an accepted Offer in Compromise:

Lump Sum Cash:

Submit a payment of 20 percent of the total offer amount with your application. Pay the remaining balance of the offer in five or fewer months after the offer is accepted in writing. Once you submit an Offer in Compromise, it may take the IRS roughly 6-18 months to investigate your Offer in Compromise. Therefore, the formal written acceptance of your Offer in Compromise might not be issued for some time.

Periodic Payment:

You can pay the offer in monthly payments over 2 years. Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.