Offer in Compromise: Settling Tax Debts for Less than You Owe

The IRS, at its discretion, may accept less than full payment of your tax debts if there is doubt as to whether the IRS could ever collect the full amount of tax debt or if there is doubt as to whether you are actually liable for the tax debt. Filing an Offer in Compromise is not easy. It takes the IRS a year or more to process most requests for an offer, and on average only 16% of offers filed end up being approved.