I have been granted a request for an "offer in Compromise" how low can I make my offer?

Asked over 1 year ago - Jacksonville, FL

I have an Iowa tax lien from 2003 due to my e's negligence ; I want to settle this to get the lien off my credit report ; I have been granted a request for an " offer in Compromise " can I offer less than the original tax debt amount ? If so , how much lower can I offer ?

Attorney answers (3)

  1. Alicia Simone James

    Contributor Level 10

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    Answered . An offer in compromise negotiation is really something you should discuss with a tax attorney. Why? You need attorney client privilege. This open forum can be viewed by anybody including Iowa revenue agents. An offer in compromise is based on a comprehensive review of your financial situation. There are no hard and fast rules. But, do not expect them to accept a very low offer. Revenue agents will look at all the financial information you share with them and use their internal formulas to estimate what you should pay. A tax attorney can help you determine a reasonable offer after reviewing your financial documents.

    My comments are NOT LEGAL ADVICE. They are for informational purposes only. Actual legal advice can only be... more
  2. Judy A. Goldstein

    Contributor Level 20

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    Best Answer
    chosen by asker

    Answered . Atty James has given wise advice. I have several clients in your situation. They have all been sent to tax attorneys for representation and assistance in dealing with high tax liens. You will most likely save more in the compromise that you spend on the attorney.

  3. Steven M Zelinger

    Pro

    Contributor Level 20

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    Lawyer agrees

    Answered . I would advise seeking legal advice from an attorney. You say you had a request granted, but I don't think you have because typically if you make an offer and it is accepted that is based on an actual number you give them (i.e., I will pay x amount to settle, they accept, then you are both obligated). This sounds like they are asking you to make an offer. The point of an offer is to pay less than you owe, but calculating how much depends on the issues involved and your finances.

    This is not legal advice nor intended to create an attorney-client relationship. The information provided here is... more

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