Every company or attorney that provides tax relief will want to tell you how they got a client into an Offer in Compromise. An Offer in Compromise is a tool a taxpayer can use to get finality to there tax problem. However, getting an Offer in Compromise ("Offer") accepted is not an easy task and is not for everyone. Here is the truth behind an Offer In Compromise.

The purpose behind the IRS Offer in Compromise is to collect as much taxes from a taxpayer that they can, as soon as possible, on the full amount, without wasting more time and money. This program makes it so any taxpayer who owes back taxes to the IRS can make them an Offer that will put an end to there tax problem once and for all.

The IRS when they determine whether you qualify for an Offer will look at your Reasonable Collection Potential ("RCP"). In determing your RCP they use a financial formula as well as other factors.These other factors make it so the IRS can reject an offer based on their belief they can collect money from you in the future. So if you qualify for an offer based on your financial circumstances they can still reject you.

Three different types of Offers exist. The first being, Doubt as to Collectibility. The IRS has a statute of limitations that is 10 years. This means that the IRS has 10 years to collect on the money you owe them. In this type of Offer you are saying that it is unlikely that you will pay your debt off in full before the statute expires.

The next type of Offer is Doubt as to Liability. This is exactly as it sounds. This type of Offer is if you believe you do not owe the entire amount for some reason and you want to offer them what you believe you do owe. Types of problems include, you are not entirely responsible, accuracy as to the tax, calculation is incorrect, etc.

The last type of Offer is Hardship, which is the most common. This is when the debt you owe would have substantial ramifications that you and your family would not recover from.

To learn more information about an Offer in Compromise and whether you qualify contact attorney Evan Wolf at 888-965-3829. Free Confidential Consultation.