Alphabet Soup for Offers in Compromise

Taxpayers who have few assets and little prospect of generating sufficient income to pay a tax liability in full may be allowed to strike a settlement for less than the full amount due to settle their case. 

The IRSʼs acceptance of an offer in compromise conclusively settles the liability, absent fraud or mistake. 

The policy goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government while providing taxpayers with a fresh start toward future voluntary compliance.