The average amount the IRS settles for in an offer in compromise is $6,629. Sounds good, doesn’t it?
If only it was that easy – everyone would be doing it, right?
The reality is that in 2014, the IRS received 68,000 offers in compromise from taxpayers.
The IRS accepted 27,000 of those offers.
That’s an acceptance rate of 40%. Or, if you are a glass half full kind of person, that’s a rejection rate of 60%.
The total amount accepted in those offers was $179 million.
If you are keeping score, that’s an average settlement of $6,629.
Now, that does not mean that you can settle with the IRS for that amount, or that there is a 40% chance your offer will be accepted. The IRS uses a very specific formula in determining the settlement value of an OIC and whether to accept or reject it. Your success depends on how you fit into the IRS formula.
The reality is somewhere in the middle: success with an offer in compromise is based on a full understanding of the IRS investigative process into your income, living expenses and assets.
It is not a one size fits all situation; the amount of one person’s settlement has no bearing on the success of another’s. The IRS does not have a set percentage of settlement to the amount owed. It all depends on convincing the IRS that your financial situation is dismal and that the IRS will never get paid after applying their internal guidelines.
If you owe the IRS and cant afford to pay, call us (800)790-8574
Advance Tax Relief LLC is a full service Tax Relief firm in which includes tax professionals, IRS enrolled agents and Tax Attorneys.
We are tax relief experts specializing in IRS back tax help, Installment Agreements, tax lien help, wage garnishment release, IRS Offer in Compromises and a whole lot more. Get a free consultation from an experienced tax relief expert today (800)790-8574 or visit ourwww.advancetaxrelief.com
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“My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful” – Shirley W, Tampa FL
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ADVANCE TAX RELIEF is not a Traditional CPA or Law Firm. We are Professional Tax Organization of Tax Attorneys, IRS Enrolled Agents, Tax Professionals and Ex IRS employees that help struggling Taxpayers settle or resolve that back tax problems. Call us (800)970-8574 for a free consultation.