Can I Really Settle My Tax Balance with the IRS?

If you currently owe the IRS money you may be wondering if they really ever “settle” for amounts less than the actual tax you owe?

The simple answer is that they do, but a settlement isn’t going to be a one size fits all solution. For some individuals this will be the best option for them and for others additional remedies may need to be explored.

The IRS uses what they call the Reasonable Collection Potential (RCP) to determine if you qualify for an offer. The RCP looks at two categories of financials. 

  1. Your total equity in real property or asset accounts (savings, checking, retirement).
  2. Your total monthly income balanced against your total monthly allowable expenses.
When these two numbers show an inability to repay the IRS an offer might be an option for you.

More disreputable tax resolution companies like to promise settlements that sometimes are not possible or in a worst case scenario may actually result in a worse outcome.

If other resolutions will solve your tax balance submitting a settlement request to the IRS may be a waste of your time. 

This is why it is important to hire someone who is going to take a full look at your tax case and come to a resolution option that best fits your needs. It is impossible to tell someone they are or are not a good offer candidate without exploring their complete financial picture.

We want to provide you all the facts. Listed below are some links and resources you may find useful if you are considering the submission of an IRS offer.

Wall & Associates, Inc. is one of the premier tax representation firms  in the country. Through a targeted case review our office is able to provide our clients top tier tax representation services. If you or someone you know needs competent tax help don’t hesitate to visit us at