Understand whether settlement review is worth exploring for your tax debt. Discuss the balance and financial circumstances, along with payment plans or penalty questions, without assuming that every account qualifies for a reduction.
What a settlement review considers
An offer in compromise is an IRS process that may allow an eligible taxpayer to settle a tax liability for less than the full amount. It is not available or suitable for everyone. The IRS considers relevant financial information, including income, expenses, assets, and ability to pay.
Separate an assessment from a decision
A discussion about possible eligibility is not an accepted offer. Ask which requirements apply, what financial information is needed, and how the proposed service would assist with the assessment or application. Avoid treating a desired reduction as an expected result.
Compare the purpose of other options
Payment arrangements and penalty-relief requests address different issues. Ask whether they also deserve consideration and why. Understand the proposed work, responsibilities, communication, and charges before agreeing to assistance.
Read the current official instructions: IRS guidance on offers in compromise.