An offer in compromise is a settlement you may qualify for as it relates to your IRS or State liability. There are three types of offers in compromise:
Doubt as to Collectible Offer In Compromise – This offer is based on your ability to pay monthly as well as a calculation concerning your liquidity in assets. At Kutler, we see many clients who unfortunately offer the IRS a flat settlement amount without regard to their income/expenses/equity in assets. Please see Kutler Tax Resolution to see if you qualify for an offer in compromise. Be wary of anyone willing to represent you and offer a flat amount not based on your financial criteria and ability to pay.
Effective Tax Administration – An ETA offer is based on hardship. The IRS still requires filling out a full 433-A however, we are arguing that while the client has the ability to pay in full, doing so would be a burden on the taxpayer. ETA’s offers are rare and again circumstantial evidence, health concerns, or the age of the taxpayer are many factors to be considered when applying for an ETA offer.
Doubt as to Liability – Has the IRS assessed you wrongfully? Has the IRS asserted a liability to you that someone else is responsible for? The Doubt as to Liability Offer is an offer based on fact versus financial criteria. If you feel you were wrongfully asserted, please contact Kutler directly to see if you qualify for this.
Offer programs are difficult, lengthy, and tough to get accepted. However, if you qualify, Kutler will fight for you to settle on your debt. Some State Taxing authorities have offer programs. Each state is different and we will be sure to see if you qualify for an offer in compromise first and foremost before informing you of your settlement options. Kutler Tax Resolution will complete a full financial analysis, history analysis, as well as a personal analysis to see if you qualify for a reduction in your tax debt.