Planning the Offer

Planning The Offer


An offer in compromise is a process whereby the taxpayer offers the government a reduced sum of money in order to settle a delinquent tax bill.

Contrary to popular belief, an offer in compromise is not an amnesty program, nor is it motivated by the governments’ desire to cut delinquent taxpayers a break. Rather, it is a calculated business decision by the taxing agencies to accept a smaller sum in lieu of spending the collection resources on chasing the taxpayer until the statute of limitation on collecting the tax runs out.

With the implementation of the IRS Fresh Start Program in 2012, thousands of taxpayers are rushing to settle their back taxes with the IRS. Unfortunately, the offer in compromise process is still not as simple as it sounds. In fact, most taxpayers are finding the process to be extremely difficult and tedious to navigate alone, often with negative results.

TaxHelpers has extensive expertise in planning, preparing, negotiating and even appealing rejections of tax compromises. Since 1997 we saved millions of dollars for our clients through the Offer in Compromise process.  We get our get our advantage by knowing and carefully navigating virtually every key regulation of the Offer in Compromise process. We also have a good working relationship with many of the Offer in Compromise Specialists working for state and federal taxing agencies.

In our experience, the ultimate success of an offer in compromise is planted in the planning stages of the process.  We review your situation from many angles in order to improve your presentation and avoid the multitude of hurdles that are buried in the tax code.

Incidentally, the IRS is not the only agency with an Offer in Compromise program. We also help taxpayers in settling delinquent taxes owed to California taxing agencies such as: The Franchise Tax Board, as well as EDD and the State Board of Equalization.