Work with a Trusted Tax Professional
Beware of deceptive claims to settle your tax debt for “pennies on the dollar”. At ENG Accounting & Taxation Srvc Inc., we are trusted tax professionals experienced in filing legitimate offers with the IRS. We understand what kind of evidence needs to be presented in order to furnish an offer that the IRS will accept so you can reduce your tax debt. We're focused on getting each individual's situation in line in the best possible way. Contact us today to learn more.
Doubt as to Liability
To qualify for this provision, a taxpayer needs to provide evidence that the assessed tax liability is incorrect and therefore they should not be required to pay the full amount. If the IRS had issued notices of assessment and the taxpayer failed to take action to dispute the tax liability at that time, or if the matter has already been contested during an audit, you will not qualify for this type of tax relief.

Doubt as to Ability to Pay
You’ll qualify for this option if you can provide evidence that you don’t have the ability to pay the tax debt and can show the IRS that it’s likely they will never be able to collect the full amount. The IRS uses a series of guidelines to establish what expenses can and cannot be considered in calculating how much the taxpayer is reasonably able to pay. When working with ENG Accounting & Taxation Srvc Inc., we do the leg work for you to determine if you meet the IRS’s requirements and are a good candidate for this program.
Effective Tax Administration
This is a relatively new provision that allows taxpayers to claim that special circumstances would make paying the debt a financial hardship. This option is usually applied to people who are in very poor health or elderly and are not able to work to pay off their tax debt.
Types of Offers in Compromise
There are a few main types of offers. The actual payment will be calculated based on your income, expenses and asset equity.
Lump Sum Cash Offer
This is the most common and least costly type of payment option. To establish the amount to be paid, the IRS calculates the taxpayer's future earning potential and determines a net available income by comparing gross income and allowable expenses.
Short Term Period Payment Offer
This payment option requires the taxpayer to pay the debt off through monthly payments over a 24 month period. Although they will have more time to pay off the debt, the total offer amount will be higher than the Lump Sum Cash Offer.
Deferred Payment Offer
This is the most costly type of offer and doesn’t always provide a significant benefit to the taxpayer. It allows the person to make monthly payments based on their calculated net available income over a longer period of time, but they will continue paying for as long as it takes to pay off the debt.