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What is an IRS “Offer in Compromise” and Why Do I Need a Tax Attorney to Submit One?

An “Offer in Compromise” is a basically a proposal to the IRS to resolve a tax debt for less than the full amount due. Some taxpayers feel comfortable attempting to manage their own offer in compromise, but this is an area that can quickly become legally complex and financially fraught with risk. First, in order to submit an offer in compromise all of your tax returns and forms must be completely and accurately filed with the IRS. At Allen Barron, we will review your unique circumstances and ensure that you are in full compliance with the IRS and in the position to submit an offer.

The IRS will not consider an offer in compromise for failure to file or for those that the IRS believes to have purposefully attempted to avoid paying taxes. As your attorney, we are uniquely qualified to speak with the IRS and work through options to resolve the matter in a way that you can comfortably live with. The IRS is very comfortable speaking with experienced tax attorneys, and they know that you (the taxpayer) are protected by “attorney-client privilege” further shielding you from inquiries from the IRS that could worsen your position.

The IRS will investigate the specific circumstances surrounding the issue (such as health problems or business related developments). As your attorney, we can manage all of these interactions with the IRS relieving you of that burden so that you can focus on healing, or managing your business through an unexpected crisis. If the IRS does not accept the offer in compromise, you have the right to appeal that decision and will need an attorney to manage that process as well.

If you owe the IRS for past taxes we encourage you to call us at 866-631-3470 for a free consultation to review your unique situation. We will work together to identify options, and work through each step that will help to resolve it.