Quick facts
- Owed to the IRS: $35,578 in federal back taxes
- Tax years: 2013 through 2017
- Settled for: $4,214
- Total savings: $31,364 (88%)
- Offer signed: May 8, 2018
- Amended offer: March 13, 2019
- Accepted by IRS Appeals: June 11, 2019
The Situation
An individual taxpayer came to Republic Tax Relief owing $35,578 to the IRS. The debt stretched across five tax years, from 2013 through 2017.
The Challenge
Five years of unpaid taxes had added up to more than the client could pay. Each year brought more penalties and interest on top of the original balance.
The first offer did not close the case. It took a second round in IRS Appeals, plus a revised offer, to reach a deal both sides could accept.
What We Did
Our team kept pushing until the case was resolved.
- Reviewed five years of tax records and the client’s full financial picture
- Prepared Form 656 and submitted the original offer in May 2018
- Took the case to the IRS Appeals Office for a second review
- Negotiated with the Appeals officer and filed an amended offer in March 2019
- Followed the case through to final acceptance in June 2019
To learn how the IRS weighs an offer, see our Offer in Compromise program overview.
The Result
On June 11, 2019, the IRS Appeals Office accepted the amended offer. A $35,578 tax debt was settled for $4,214. That is a savings of $31,364, or 88%.
In simple terms, the client paid about 12 cents for every dollar owed. Five years of back taxes were closed out with one agreement.
In return, the client agreed to file and pay all required taxes on time for five years. That was a fair trade for removing more than $31,000 in debt.
This case shows why a first answer from the IRS does not have to be the final one. Staying with the process paid off.
Could This Work for You?
Every tax situation is different. Our Offer in Compromise questions page answers what most people ask first. You can also read our recent post on settling with the IRS.
Disclaimer: Results vary based on individual circumstances. Past results do not guarantee future outcomes. Client details have been 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.