An Offer in Compromise is a tax settlement option that allows a business to settle a tax debt for less than the full amount owed. It is an excellent tax settlement option for a qualifying business because it allows for the resolution of all outstanding tax balances at once, including penalties and interest, back tax liabilities and multiple tax years. Once an Offer in Compromise petition is accepted and the offer amount is paid in full, all tax liens are removed, thus allowing the business to continue operating and growing without restraint.
While an Offer in Compromise offers obvious advantages to a qualifying business, it is not a tax settlement option that is easily obtained. The process of submitting an Offer in Compromise petition is long and complicated and the rejection rate is high. Because the IRS is agreeing to settle a tax debt for less than the full amount owed, it only accepts Offer in Compromise petitions from businesses that meet one of three very specific qualifying criteria.
The primary components necessary to obtain a successful Offer in Compromise agreement are outlined below:
- The business must meet one of three specific IRS eligibility criteria.
- The eligibility criteria must be adequately documented.
- The total amount of the identified tax debt must be accurate.
- The Offer in Compromise application must be submitted according to IRS guidelines.
The tax professionals at BusinessTaxPreparation.com are experienced at submitting Offer in Compromise petitions and will only recommend this tax settlement option if they believe that the offer will be accepted and that it is the best resolution option available. Once that determination has been made, the tax specialists at BusinessTaxPreparation.com will prepare the offer, submit the required documentation and represent the client before the IRS until the application is accepted and the process is complete.