Quick facts
- Owed to the IRS: $72,796 in federal back taxes
- Tax years: 2013 through 2017
- Settled for: $500
- Reduction: More than 99%
- Offer signed: June 14, 2018
- Accepted by IRS Appeals: November 14, 2019
The Situation
An individual taxpayer came to Republic Tax Relief owing $72,796 to the IRS across five tax years, 2013 through 2017. On top of the debt, the client was dealing with a serious medical hardship.
The Challenge
The balance was far more than the client could ever pay. The medical situation made it even harder to earn income and keep up with bills.
This case could not be solved with numbers alone. The IRS needed to see the full human picture behind the debt.
It also took patience. The offer was signed in June 2018, and final approval did not come until the case reached the IRS Appeals Office in November 2019.
What We Did
Our team stayed with this case from the first review to the final letter.
- Reviewed five years of tax history and the client’s full financial picture
- Gathered records to document the medical hardship
- Prepared Form 656 and submitted the offer in June 2018
- Took the case to IRS Appeals and presented the hardship in full
- Followed the case for 17 months until the IRS gave final approval
Want to know what the IRS looks at when reviewing an offer? Visit our Offer in Compromise services page.
The Result
On November 14, 2019, the IRS Appeals Office accepted the offer. A $72,796 tax debt was settled for $500. That is a reduction of more than 99%.
Put another way, the client paid less than one cent for every dollar owed. The IRS also applied the $100 already paid toward the $500 offer amount.
In return, the client agreed to file and pay all required taxes on time for five years. That was a small trade for closing out more than $72,000 in debt.
Most importantly, the client could focus on their health instead of the IRS.
Could This Work for You?
No two cases are the same. Our answers to common settlement questions are a good place to start. For more background, read our guide to settling IRS debt.
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.