An offer in compromise is an agreement between the IRS and the taxpayer whereby the IRS agrees to settle a tax liability for less than the full amount owed.  Absent special circumstances, an offer will not be accepted unless the amount offered is equal to or more than the Service’s “reasonable collection potential” or “RCP”.  The RCP is a formula created by the IRS to determine and measure what it believes to be the amount it could collect through levy and seizure of assets and an installment payment agreement which considers future income.  Although the offer in compromise program is a powerful tool that we have used to save our clients millions of dollars, because it is a mathematical formula that is applied objectively to each individual taxpayer, it is very important for you to be wary of claims by practitioners that your tax debts can be settled for “pennies on the dollar.”

At Andreozzi Bluestein LLP, we analyze each individual situation to strategize and determine the best solution for your case.  If an offer in compromise is a potential solution to your tax problem, we analyze your particular circumstances to advise you as to both the offer process and the correct amount of your offer.  Once determined, we prepare your offer, submit it to the IRS and represent you before the IRS throughout the entire process.  However, if you are not a candidate for an offer in compromise, at Andreozzi Bluestein LLP we explain to you why an offer is not the right solution to your tax problem and counsel you as to other potential solutions.  Any practitioner can take your money and file an offer in compromise, but how many counsel you on the likelihood of success, and when low, develop an alternate strategy to solve your tax problems?  The offer in compromise program is a powerful tool for solving tax problems, but is not the right tool for every taxpayer.

Call the attorneys at Andreozzi Bluestein LLP today to determine if it is the right solution for you.