Quick facts
- Owed to the IRS: $19,871 in federal back taxes
- Settled for: $500
- Reduction: More than 97%
- Offer signed: June 14, 2019
- Offer accepted: October 3, 2019
The Situation
An individual taxpayer came to Republic Tax Relief owing $19,871 to the IRS. He needed a solution that matched what he could actually afford.
The Challenge
The balance was far more than he could ever pay. When the IRS accepted his offer, it cited special circumstances, which shows his case went beyond simple numbers.
Paying in full was not an option. A long payment plan would have kept him tied to the IRS for years, with interest and penalties still growing. He needed a settlement the IRS would agree to.
What We Did
Our team handled the case from start to finish.
- Reviewed his tax history and full financial picture
- Prepared Form 656 and his supporting financial statement
- Built an offer amount based on his real ability to pay
- Submitted the signed offer and initial payment in June 2019
- Tracked the offer through IRS review and handled follow-up requests
Curious how the IRS weighs an offer like this? Our Offer in Compromise program page explains it.
The Result
On October 3, 2019, the IRS accepted his offer. A $19,871 tax debt was settled for $500. That is a reduction of more than 97%.
The IRS also applied the $100 he had already paid toward the $500 offer amount. That left a small balance to close out the debt for good.
In return, he agreed to file and pay all required taxes on time for five years. The IRS also kept any refunds owed to him for 2019 and earlier. Those terms were a small trade for leaving nearly $20,000 of debt behind.
For him, the result meant no more collection letters and no more years of payments he could not keep up with. He got a clear finish line and a fresh start.
Could This Work for You?
Every case is different. If you have questions about your own situation, our Offer in Compromise FAQ covers the ones we hear most. You can also read our latest article on IRS settlements.
Disclaimer: Results vary based on individual circumstances. Past results do not guarantee future outcomes. Client details have been changed or withheld to protect privacy.
Get Help With Your IRS Debt
If you owe the IRS more than you can pay, talk to our team. We will review your case and explain your options.
Call (800) 676-6014 or Speak With a Tax Relief Professional.