Offer in Compromise: What is it, and Why Would Someone Want to Use it?

An offer in compromise is a type of compromise that allows parties to end litigation and settle disputes before going to trial. Offers in compromise are often successfully used by taxpayers who have been caught up in IRS audits. Find out about an offer in compromise and how it can be helpful for taxpayers!

What is an Offer in Compromise?

An offer in compromise is a legal term used to describe a potential settlement between two or more parties involved in a dispute. The offer may be made by either party, and it is typically designed to resolve the dispute without going to trial.

Offers in compromise are often used when one party feels that they are not likely to win their dispute at trial. Offers in compromise can also be used when one party feels that they would be willing to settle for less than what they feel they are entitled to.

Typically, offers in compromise are presented to the other party as an option. Once the other party has had a chance to review the offer, they may choose to accept it or decline it. If the other party declines the offer, then the dispute will likely proceed to trial.

Tax Relief Professional Offer in Compromise?

There’s a lot of confusion and misunderstanding surrounding offer in compromise (OIC). In this blog post, we’ll demystify what is an offer in compromise and explain why it might be something that someone would want to use.

An offer in compromise is a legal technique used to resolve tax disputes. Essentially, it’s a way for the taxpayer and the IRS to agree on how much money should be paid in taxes, without going to court.

Why would someone want to use an offer in compromise?

There are a few reasons why someone might want to use an offer in compromise:

The taxpayer may not be able to afford to pay the full amount of taxes that they owe. An offer of compromise could help them reduce their tax debt by reducing the amount that they owe. The taxpayer may not be satisfied with the outcome of their tax dispute with the IRS. Offering to settle the dispute through an offer of compromise could help the taxpayers’ resolution that they’re more likely to agree with. 

The taxpayer may not have enough information or documentation to support their case against the IRS. Offering to settle the dispute through an off of compromise could help them gather additional information.