What
What an Offer in Compromise Includes
An Offer in Compromise is a formal agreement between a taxpayer and the Internal Revenue Service that allows a tax debt to be settled for less than the full amount owed.
This process may include:
Benefits:
- Reviewing IRS account balances and filing history
- Confirming all required tax returns are filed
- Evaluating income, expenses, and assets
- Preparing financial documentation required by the IRS
- Submitting the Offer in Compromise application
- Responding to IRS requests during the review process
Each application is reviewed by the IRS based on financial eligibility.
When
When an Offer in Compromise May Apply
An Offer in Compromise is not available in every case. The IRS evaluates whether the full tax balance can be collected within a reasonable period of time.
This option may be considered when:
Benefits:
- The tax balance exceeds the ability to pay
- Income is limited relative to the total debt
- Assets are not sufficient to cover the balance
- Financial hardship is present
- All required tax returns have been filed
If the IRS determines the full balance can be collected, the offer may be rejected.
How
How the IRS Evaluates an Offer
The IRS reviews each application based on what it calls reasonable collection potential.
This includes:
Benefits:
- Current income
- Necessary living expenses
- Bank accounts and savings
- Real estate and other assets
- Overall ability to pay over time
If the IRS determines that the proposed settlement amount reflects what can reasonably be collected, the offer may be accepted.
Other
Other IRS Resolution Options
An Offer in Compromise is one of several ways to resolve tax debt.
Depending on the situation, other options may include:
- Installment agreements for monthly payments
- Penalty abatement requests
- Temporary collection holds based on financial hardship
The appropriate solution depends on the financial details of the case.
Why
Why Work With Advanta Tax
Advanta Tax provides:
- Direct communication with the IRS on your behalf
- Proper preparation of IRS forms and documentation
- Houston-based service with local support
- Accurate financial review before submitting an offer
- Clear explanation of eligibility and expectations
We focus on accurate submission and proper handling of the application process.
How We Work
Our Process
We follow a consistent process when handling tax resolution matters.
1
Account
Review
We obtain IRS records to confirm balances and filing history.
2
Compliance
Check
We identify current balances owed to IRS and/or state and file missing returns.
3
Evaluation of
Options
We determine which IRS programs may apply.
4
Implementation
We proceed with the appropriate resolution strategy.
5
Follow Up
We continue communication with the IRS until the matter is addressed.
Service Area
Houston-based,
nationwide service
Advanta Tax Consulting is based in Houston and serves clients nationwide.
FAQ
Frequently Asked Questions
An Offer in Compromise is a program that allows certain taxpayers to settle IRS tax debt for less than the full balance owed, based on financial eligibility.
No. The IRS reviews income, expenses, and assets to determine whether the full balance can be collected.
Yes. The IRS generally requires all required tax returns to be filed before considering an Offer in Compromise.
The review process can take several months depending on the complexity of the case and IRS response times.
Yes. If the IRS determines the full balance can be collected, the offer may be denied.
Accredited & Trusted
Recognized Credentials & Memberships
National Association of Enrolled Agents
Texas Society of Enrolled Agents
Asian Chamber of Commerce
Get In Touch
Contact Advanta Tax
Contact our office to discuss your IRS tax situation and review available options.
Consultations for Tax Resolution Issues are Free
address
4009 EE Bellaire Blvd
Houston, TX 77025
Phone
Fax
713-664-7230