Overview

If you aren’t able to fully pay off your tax debt, you may be able to settle your debt for less than the amount you owe by getting an Offer in Compromise from the IRS. Here’s how we helped a retired couple in Florida reach a settlement for their tax debt.

Situation

Sam and Ellie are retired and live by the water in Bay County, FL. One day, they received a letter from the IRS notifying them that they jointly owed $35,000 in back taxes. After further investigation, our team also discovered their balance was in the hands of the IRS Collections Department, with tax liens already filed on their account.

Solution

Since Sam and Ellie were both retired and had minimal equity, they were eligible for an Offer in Compromise (OIC) from the IRS, which allowed them to settle their debt in full instead of setting up a payment plan, which allowed them to settle their tax debt for pennies on the dollar with the IRS.

Result

With a successful settlement, we were able to save the couple almost $34,000 in tax debt in approximately 13 months.