The Offer in compromise program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay.
The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
Often it is possible to eliminate all or a portion of the taxes you owe - including penalties and interest - at an enormous discount. If done correctly your debt may be settled for only a portion of what you presently owe.
