{"id":216,"date":"2023-08-17T00:57:51","date_gmt":"2023-08-17T00:57:51","guid":{"rendered":"https:\/\/www.taxmatterssolutions.com\/?page_id=216"},"modified":"2023-08-17T01:06:21","modified_gmt":"2023-08-17T01:06:21","slug":"offer-in-compromise","status":"publish","type":"page","link":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/","title":{"rendered":"Offer In Compromise"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” background_color=”#55791A” custom_padding=”50px||15px||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_font=”|600|||||||” header_text_color=”#FFFFFF” header_font_size=”36px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

Offer In Compromise<\/h1>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”0px||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_2_font=”|600|||||||” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” locked=”off” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

Offer-In-Compromise (OIC):<\/h2>\n

[\/et_pb_text][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” custom_margin=”||||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]An offer in compromise allows you to settle your tax debt for less than the full amount owed. It may be a legitimate option if you can\u2019t pay your full tax liability or doing so would create a financial hardship. The IRS will consider your equity in assets and your ability to pay by analysis of your income and expenses. The IRS will generally accept an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. The service refers to this amount as the full collection potential. <\/p>\n

[\/et_pb_text][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_2_font=”|600|||||||” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” locked=”off” theme_builder_area=”post_content” header_3_font=”|600|||||||” sticky_enabled=”0″]<\/p>\n

Graphic \u2013 Net Realizable Value of Assets + Calculation of Future Income = Full Collection Potential (ie acceptable offer)
\n<\/h3>\n

[\/et_pb_text][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” custom_margin=”||||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]The calculation of your ability to pay is referred to as \u201cThe Calculation of Future Income\u201d\u009d. Future income is defined as an estimate of the taxpayer\u2019s ability to pay based on an analysis of gross income less normal living expenses for a specific number of months into the future. The number of months used depends on the payment terms of the offer. <\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” background_color=”#f7f7f7″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_3_font=”|600|||||||” header_3_text_align=”center” custom_margin=”||10px||false|false” custom_padding=”15px|15px|15px|15px|false|true” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]Payment Terms<\/strong><\/p>\n

(1)If the offer is paid in 5 or fewer installments in 5 months or less the calculation of future income is limited to 12 months worth. So for example your monthly ability to repay is $300 per month. The calculation of future income is than $300 X 12 which is $3,600. <\/p>\n

(2)If the offer will be paid in more than 5 installments or more than 5 months up to a maximum of 24 months the calculation of future income is 24 months worth.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]You must be current with all your filings before the IRS will even consider your offer. You are not eligible for an OIC if you are in open bankruptcy proceeding. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date. There is also a \u201cBad Boy Policy\u201d\u009d which says that if the taxpayer doesn\u2019t stay compliant for 5 years the IRS can reassert the forgiven tax liability.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” locked=”off” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_2_font=”|600|||||||” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

A completed offer in compromise package will include:
\n<\/h2>\n

[\/et_pb_text][dsm_icon_list icon_color=”#0079C2″ list_vertical_alignment=”flex-start” list_padding=”0px||||false|false” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ border_width_top_icon=”5px” border_color_top_icon=”#FFFFFF” global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][dsm_icon_list_child text=”Form 433-A (OIC) for individuals or 433-B(OIC) for businesses and all required documentation as specified on the forms” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”Form 656″ font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”$150 application fee (non-refundable); and” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”Initial payment (non-refundable) for Form 656″ font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][\/dsm_icon_list][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]Your initial payment will vary based on your offer and the payment option you choose:<\/p>\n

Lump Sum:<\/strong> Submit an initial payment of 20 percent of the total offer amount with your application. Then pay the remaining balance of the offer in 5 or fewer payments after receiving written acceptance of your offer from the IRS.<\/p>\n

Periodic Payment: <\/strong> Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” locked=”off” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_2_font=”|600|||||||” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

While your offer is being processed by the IRS:
\n<\/h2>\n

[\/et_pb_text][dsm_icon_list icon_color=”#0079C2″ list_vertical_alignment=”flex-start” list_padding=”0px||||false|false” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ border_width_top_icon=”5px” border_color_top_icon=”#FFFFFF” global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][dsm_icon_list_child text=”Your non-refundable payments and fees will be applied to your tax liability (you may designate payments to a specific tax year and tax debt):” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”Other collection activities are suspended!” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”The collection statute expiration date is extended” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”A notice of federal tax lien may be filed” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][\/dsm_icon_list][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” locked=”off” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_2_font=”|600|||||||” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

What happens if your offer is accepted:
\n<\/h2>\n

[\/et_pb_text][dsm_icon_list icon_color=”#0079C2″ list_vertical_alignment=”flex-start” list_padding=”0px||||false|false” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ border_width_top_icon=”5px” border_color_top_icon=”#FFFFFF” global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][dsm_icon_list_child text=”You must meet all the offer terms listed in section 8 of Form 656 including filing all required tax returns and making all payments;” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][dsm_icon_list_child text=”Federal tax liens are not released until your offer terms are satisfied” font_icon=”9||divi||400″ icon_color=”#0079C2″ icon_font_size=”16px” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][\/dsm_icon_list_child][\/dsm_icon_list][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” locked=”off” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” header_2_font=”|600|||||||” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

What happens if your offer is rejected:
\n<\/h2>\n

[\/et_pb_text][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” custom_margin=”||10px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]If your offer is rejected you can fight on. You may appeal a rejection within 30 days using Form 13711 Request for Appeal of Offer in Compromise<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.21.0″ _module_preset=”default” background_color=”#55791A” custom_margin=”0px||0px||false|false” custom_padding=”60px||71px||false|false” custom_padding_tablet=”92px||72px||false|false” custom_padding_phone=”79px||80px||false|false” global_module=”183″ saved_tabs=”all” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” width=”90%” custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” animation_style=”slide” animation_direction=”bottom” animation_duration=”500ms” animation_delay=”600ms” animation_intensity_slide=”10%” animation_speed_curve=”ease” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” text_text_color=”#FFFFFF” text_font_size=”16px” header_2_font=”|600|||||||” header_2_text_align=”center” header_2_text_color=”#FFFFFF” header_2_font_size=”30px” header_2_line_height=”1.2em” text_orientation=”center” custom_margin=”0px||27px||false|false” custom_margin_tablet=”0px||27px||false|false” custom_margin_phone=”0px||15px||false|false” custom_margin_last_edited=”on|desktop” custom_padding=”0px||0px||false|false” header_2_font_size_tablet=”34px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”off|desktop” header_2_line_height_tablet=”1.2em” header_2_line_height_phone=”1.6em” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

Interested in our services? We’ve got you covered!<\/h2>\n

Reach out today to learn more about how to get started.[\/et_pb_text][et_pb_button button_url=”\/contact-us\/” button_text=”CONTACT US” button_alignment=”center” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” button_text_size=”14px” button_text_color=”#FFFFFF” button_bg_color=”RGBA(255,255,255,0)” button_border_width=”2px” button_border_color=”rgba(255,255,255,0.3)” button_border_radius=”0px” button_letter_spacing=”1px” button_font=”|600|||||||” button_icon=”5||divi||400″ custom_margin=”0px||0px||false|false” custom_padding=”14px|36px|15px|36px|false|false” global_colors_info=”{}” button_bg_color__hover_enabled=”on|desktop” button_text_color__hover_enabled=”on|hover” button_text_color__hover=”#111111″ button_bg_color__hover=”#FFFFFF” button_bg_enable_color__hover=”on” button_border_color__hover_enabled=”on|desktop” button_border_color__hover=”#FFFFFF” theme_builder_area=”post_content”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Offer In CompromiseOffer-In-Compromise (OIC):An offer in compromise allows you to settle your tax debt for less than the full amount owed. It may be a legitimate option if you can\u2019t pay your full tax liability or doing so would create a financial hardship. The IRS will consider your equity in assets and your ability to pay by analysis of your income and expenses. The IRS will generally accept an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. The service refers to this amount as the full collection potential. Graphic \u2013 Net Realizable Value of Assets + Calculation of Future Income = Full Collection Potential (ie acceptable offer) The calculation of your ability to pay is referred to as \u201cThe Calculation of Future Income\u201d\u009d. Future income is defined as an estimate of the taxpayer\u2019s ability to pay based on an analysis of gross income less normal living expenses for a specific number of months into the future. The number of months used depends on the payment terms of the offer. Payment Terms (1)If the offer is paid in 5 or fewer installments in 5 months or less the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"yoast_head":"\nOffer In Compromise - Tax Matters Solutions, LCC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Offer In Compromise - Tax Matters Solutions, LCC\" \/>\n<meta property=\"og:description\" content=\"Offer In CompromiseOffer-In-Compromise (OIC):An offer in compromise allows you to settle your tax debt for less than the full amount owed. It may be a legitimate option if you can\u2019t pay your full tax liability or doing so would create a financial hardship. The IRS will consider your equity in assets and your ability to pay by analysis of your income and expenses. The IRS will generally accept an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. The service refers to this amount as the full collection potential. Graphic \u2013 Net Realizable Value of Assets + Calculation of Future Income = Full Collection Potential (ie acceptable offer) The calculation of your ability to pay is referred to as \u201cThe Calculation of Future Income\u201d\u009d. Future income is defined as an estimate of the taxpayer\u2019s ability to pay based on an analysis of gross income less normal living expenses for a specific number of months into the future. The number of months used depends on the payment terms of the offer. Payment Terms (1)If the offer is paid in 5 or fewer installments in 5 months or less the […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/\" \/>\n<meta property=\"og:site_name\" content=\"Tax Matters Solutions, LCC\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-17T01:06:21+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/\",\"url\":\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/\",\"name\":\"Offer In Compromise - Tax Matters Solutions, LCC\",\"isPartOf\":{\"@id\":\"https:\/\/www.taxmatterssolutions.com\/#website\"},\"datePublished\":\"2023-08-17T00:57:51+00:00\",\"dateModified\":\"2023-08-17T01:06:21+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.taxmatterssolutions.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Offer In Compromise\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.taxmatterssolutions.com\/#website\",\"url\":\"https:\/\/www.taxmatterssolutions.com\/\",\"name\":\"Tax Matters Solutions, LCC\",\"description\":\"Make More Money, Keep More Money\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.taxmatterssolutions.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Offer In Compromise - Tax Matters Solutions, LCC","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/","og_locale":"en_US","og_type":"article","og_title":"Offer In Compromise - Tax Matters Solutions, LCC","og_description":"Offer In CompromiseOffer-In-Compromise (OIC):An offer in compromise allows you to settle your tax debt for less than the full amount owed. It may be a legitimate option if you can\u2019t pay your full tax liability or doing so would create a financial hardship. The IRS will consider your equity in assets and your ability to pay by analysis of your income and expenses. The IRS will generally accept an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. The service refers to this amount as the full collection potential. Graphic \u2013 Net Realizable Value of Assets + Calculation of Future Income = Full Collection Potential (ie acceptable offer) The calculation of your ability to pay is referred to as \u201cThe Calculation of Future Income\u201d\u009d. Future income is defined as an estimate of the taxpayer\u2019s ability to pay based on an analysis of gross income less normal living expenses for a specific number of months into the future. The number of months used depends on the payment terms of the offer. Payment Terms (1)If the offer is paid in 5 or fewer installments in 5 months or less the […]","og_url":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/","og_site_name":"Tax Matters Solutions, LCC","article_modified_time":"2023-08-17T01:06:21+00:00","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/","url":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/","name":"Offer In Compromise - Tax Matters Solutions, LCC","isPartOf":{"@id":"https:\/\/www.taxmatterssolutions.com\/#website"},"datePublished":"2023-08-17T00:57:51+00:00","dateModified":"2023-08-17T01:06:21+00:00","breadcrumb":{"@id":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.taxmatterssolutions.com\/offer-in-compromise\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.taxmatterssolutions.com\/"},{"@type":"ListItem","position":2,"name":"Offer In Compromise"}]},{"@type":"WebSite","@id":"https:\/\/www.taxmatterssolutions.com\/#website","url":"https:\/\/www.taxmatterssolutions.com\/","name":"Tax Matters Solutions, LCC","description":"Make More Money, Keep More Money","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.taxmatterssolutions.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/pages\/216"}],"collection":[{"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/comments?post=216"}],"version-history":[{"count":3,"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/pages\/216\/revisions"}],"predecessor-version":[{"id":220,"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/pages\/216\/revisions\/220"}],"wp:attachment":[{"href":"https:\/\/www.taxmatterssolutions.com\/wp-json\/wp\/v2\/media?parent=216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}