Offers in Compromise

Offers in compromise is an IRS process where they will consider settling your tax debt for a lower amount. You hear a lot of tax experts advertising that they can settle your tax debt at pennies on the dollar. This is the process they are talking about. You have to pay a $150 application fee and fill out a long financial form. There is no negotiation as the form calculates the amount you can pay after an allowance for basic living expenses. Most offers are rejected by the IRS and only 20% are accepted. It is a tough way to go.