Here we answer the question: How much will the IRS settle for? The answer depends on a calculation of your assets, income, and expenses.
IRS settles for an amount based on income and asset calculations
It’s not “90% off” or any set number you see stated on various tax relief company ads. The average settlement is probably around $10,000-$15,000 at the time of writing this article.
If you are insolvent with little to no assets and don’t have a high income, often you can settle your case for a nominal amount of money. That can often be $10 to $50. That’s way better than 90% off if you owe a large sum.
If you have more assets than the tax debt, you probably are not going to get a settlement.
If you are barely making it month to month, good chance you will get an ultra-low offer regardless of the total debt. In case you have a really high balance with an above-average income, you probably are going to get a larger offer if you qualify at all.
As tax attorneys, our job is often to close the gap between your income and expenses by making sure everything possible that can be counted is counted. By closing the gap in income and expenses, we can get you a lower settlement.
See our free tax help guide here for more information on IRS settlements. You can also go directly to our Offer In Compromise guide for information on completing your own tax settlement.
If you think you could benefit from the help of a tax attorney, schedule a consultation with one of our expert tax attorneys here or call us at (888) 515-4829.