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  • dave rosa

Offer in Compromise | Get Help | San Diego | Flat Fee Tax Service

Updated: Jul 22


The COVID-19 lockdowns have resulted in jobs lost, fluctuating income, overwhelming medical bills, and other unexpected monthly expenses that can result in a huge tax obligation that you can’t pay in full.

All of those unemployment payments that have been doled out need to have taxes paid. Experience tells us that this probably didn't happen.

Fortunately, those who want to pay their taxes but cannot afford a lump sum now have several potential solutions.

For example, you might qualify for one of the major tax relief solutions, an IRS settlement offer known as an Offer in Compromise. An Offer in Compromise is one of the most underused and misunderstood IRS tax relief options, but it can be the perfect solution for tax relief.

The tax professionals at Flat Fee Tax Service work directly with you so that we completely understand your tax situation and proceed to resolve it. A Tax Attorney will provide all of the Offer In Compromise (#OfferinCompromise) help you need, starting with whether you qualify for the program, to the specifics of the low-income certification guidelines. DO YOU KNOW WHAT AN OFFER IN COMPROMISE IS?

An Offer in Compromise is a tax relief settlement between a taxpayer and the IRS, where the IRS typically accepts FAR LESS than the entire tax debt owed.

Not everyone is qualified or eligible for an Offer in Compromise. However, you will be surprised at how many of you are eligible to settle their IRS tax debt.

If you qualify for this IRS settlement offer, much of your tax debt can be cleared. The IRS typically will receive 80,000 Offer in Compromise submissions every year. The IRS averages 42% approval rate. There are 2 reasons why the approval rate isn't higher. One is taxpayers attempting to do their own IRS settlement and the second is tax resolution companies submitting an Offer when they know there is little or no hope for success.


READ SOME OF OUR SUCCESS STORIES. Types of Offer in Compromise Payment Methods

An Offer in Compromise can be paid either in a lump sum or in payments. Our many clients have had their tax debts settled for as little as a hundred dollars. Clients have also settled for as little as $500 and paid that amount in monthly installments of $50 (10 months). The amount of the settlement is based entirely on the IRS financial formula for settlements. Who is Qualified for an Offer in Compromise The IRS will consider your unique set of facts and circumstances to determine if you qualify including:

  • Your overall ability to pay your taxes

  • Your monthly income

  • Your monthly expenses

  • Your assets and equity

To qualify for an IRS settlement offer, the IRS must conclude that one of the following conditions exist:

  • You can’t afford to pay the full amount — The IRS will evaluate your situation and determine if you can’t afford to pay the full tax debt before the statute of limitations ends – generally 10 years.

  • Economic hardship — Paying your full tax debt would cause you economic hardship. In most cases, you must already be working full time (30 hours per week for at least the next 3 months), and still be unable to meet basic needs if you pay your full tax debt.

  • Doubt over the tax debt you owe — When there’s doubt over whether you actually owe the tax, or there’s doubt about the accuracy of the amount owed, the IRS may offer a settlement instead of using the time and money required for a close tax audit.

Concentrate on "you can't afford to pay the full amount." To be eligible for the above IRS settlement offers, taxpayers must be sure they have filed all the required tax returns on the appropriate forms and be up-to-date with estimated tax payments for business owners and self-employed individuals while keeping track of federal tax deposits for businesses with employees. The overwhelming amount of paperwork that must be completed with pin-point precision is enough to keep many Americans from settling with the IRS.

To be successful, it’s essential to get experienced settlement help for your Offer in Compromise instead of trying to face the IRS’s bureaucratic nightmare by yourself. The above information has been provided by the tax professionals at Flat Fee Tax Service who have been providing valuable IRS tax debt help at a very affordable fee for a decade. Our teams are located in San Diego, California, and Clearwater, Florida. This allows our clients to receive service from 8 A.M. Eastern to 6 P.M. Pacific time. Give our teams of tax professionals a call today.