Okay, it's true. News-worthy reductions of tax liability with the IRS Offer-in-Compromise (OIC) program can actually happen. Most tax practitioners know that an OIC tax reduction is available for individuals and, only about 1/3 of Offers have been accepted by IRS. But recently, one of my business tax clients enjoyed a major success with an IRS Offer.
The company had accumulated a large amount of tax debt, after having filed a few returns with unpaid liability. Through the offer process, the client received a 7-figure reduction of tax, penalty and interest. IRS agreed to write-off more than $1 million dollars, and still allowed the client to stay in business. Very good results: