An offer in compromise (OIC) provides for settling an IRS debt for less than what is owed. For the most part, the agency will allow for this when the taxpayer has a financial hardship. However, before making an application, you must be current with all tax filings and payments.
Next, you should check out Form 656-B. With it, you will have instructions on how to fill out Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses). Basically, the IRS requires that you provide extensive disclosures of your financials.
Keep in mind that the process can be complicated. And yes, the IRS has a high rate of rejecting OIC’s.
So at Pathway Tax, we can certainly help out. In fact, we provide a free initial consultation.