Who Qualifies for an Offer in Compromise? Key IRS Rules
An Offer in Compromise gives certain taxpayers the opportunity to resolve outstanding IRS debt for an amount below the original balance when their financial circumstances make full repayment unrealistic.
Who qualifies for an offer in compromise is determined after the IRS reviews your overall financial picture, including available resources, ongoing household costs, and what you can reasonably contribute toward your outstanding balance.
According to the Internal Revenue Service, taxpayers may qualify to settle their tax debt for less than the full amount owed if paying in full is not realistic based on their financial situation.
Instead of focusing on the amount you owe, the IRS examines your overall financial position to decide whether your proposed settlement is reasonable.
A growing tax bill can feel overwhelming.
However, understanding the IRS rules can help you determine whether an Offer in Compromise is a realistic option. Read more
