Tax Debt Settlement - Offer in Compromise and IRS Programs

Tax Debt Settlement – How To Settle With the IRS

The IRS realizes that there are special circumstances where taxpayers should not be held liable for all of their tax debt. As a result, there are several ways to settle for less with the IRS. Here are some tax debt settlement options.

Offer in Compromise (The Ultimate Tax Debt Settlement)

An offer in compromise is when you settle tax debt for less than you owe. It’s not for everyone. The process is difficult, and there are strict qualification requirements. The IRS will only accept an offer in compromise if your tax debt settlement offer is equal to or greater than the amount the IRS would be able to collect using forced collection mechanisms (seizing assets, garnishing wages, etc.).

An IRS Offer in Compromise is the ultimate IRS tax debt settlement program as it allows a taxpayer to make a settlement offer for less than the total amount of income tax owed. If the IRS accepts your settlement offer, you pay less than you owe, and the IRS wipes clean the rest of your tax debt. After your settlement payment, you are in good standing, and you don’t owe anything else. However, you will need to stay in tax compliance for five years going forward.

To take advantage of this tax debt settlement program, you have to actually submit an offer in compromise. The IRS will only accept an offer if they feel that your offer is equal to or greater than the amount they would ever collect from you, even if they used enforced collection actions (garnishment, or levies).

The IRS rejects most settlement offers as only 42.8% were accepted last year. If you really want a tax debt settlement, don't submit your own. Generally, you can only get approved if you have serious financial issues. Therefore, check out the following links for more details on this tax settlement option.


IRS Garnishing Wages - IRS Settlement - IRS Tax Relief

When you have the IRS garnishing wages, when you have need to settle with with the IRS, your IRS solution is the best IRS help team at Flat Fee Tax Service, Inc. Our IRS Tax Attorney(s) will protect you while our experienced team of IRS tax professionals work on settling with the IRS.

IRS Penalty Abatement

Penalty abatement is when the IRS forgives penalties. This is a very common method for settling taxes for less than you owe. In fact, about a third of all IRS penalties are removed at a later date.

Partial Payment Installment Agreement

A Partial Payment Installment Agreement is when you make payments based on what you can afford rather than the monthly amount required to satisfy the tax debt in full before the CSEDs expire. The balance gets reduced as the statute of collections comes into effect. Under the statute of limitations, your tax debt expires after a certain period of time (generally 10 years from the date it is assessed). As the expiration date hits, that tax debt is erased, and you are no longer responsible for it.


Why pay your tax debt if it is just going to expire eventually? Because setting up a payment plan stops the IRS from taking enforced collection actions like the seizure of assets, garnishing your wages, or taking your passport.

Innocent Spouse Relief

Innocent spouse relief is only available to taxpayers who have filed jointly with their spouse. Normally, both spouses are liable for all tax, penalties, and interest, but there are some rare situations where it’s unfair to hold both spouses liable. If you qualify, the IRS still holds the spouse liable, but you aren’t responsible.

Tax Debt Settlement Services

If you are looking for tax debt settlement either for IRS, Call our tax debt settlement phone line for your free and confidential consultation. The best IRS help team at Flat Fee Tax Service, Inc. will help you figure out which option is best for your situation. There are many different types of tax debt settlements. It helps to consult with an experienced Tax Lawyer.



keep in touch

Flat Fee Tax Service

3200 4th Ave., Suite 208,

San Diego, CA 92103

Phone. 800-589-3078