Key Takeaways
- An Offer in Compromise allows eligible taxpayers to settle IRS tax debt for less than the full amount owed.
- Eligibility depends on reasonable collection potential, based on income, assets, and allowable living expenses.
- The IRS reviews three offer types: doubt as to collectability, doubt as to liability, and effective tax administration.
- Incomplete filings, inaccurate financial disclosures, or noncompliance often result in returned or rejected offers.
- Professional guidance can help align financial documentation with IRS standards and improve approval chances.
There is no escaping the wrath of the IRS when it comes to unpaid taxes. There are several differences between running a small business versus a large corporation, but at the end of the day, payroll taxes are something that all business owners must pay close attention to in order to avoid problems with the IRS.
