We can’t seem to go a day without hearing multiple IRS tax relief commercials on TV or the radio about making a deal to settle for less with the IRS.

I’m IRS lawyer Darrin Mish and I’ve been representing clients before the IRS since 1999.

What those commercials are talking about is an IRS  program called the offer in compromise. Specifically what their talking about is an offer in compromise based on doubt as to collectibility.

The doubt as to collectibility offer in compromise is a program created by Congress allowing taxpayers who really have no possibility of ever full paying their liability with the IRS, to enter into a IRS tax relief deal to sell for less. The amount of the offer really boils down to a math equation. It goes like this, monthly disposable income times 12, plus the value of your assets equals the amount of your offer. Monthly disposable income is the difference between your monthly income and your monthly allowable expenses.

So let’s show an example so that you have a better idea of how this works. If your monthly disposable income was $200 multiplied by 12, and assuming you had no assets, your offer amount would be $2400. It doesn’t matter how much you owe, it only matters how much you can afford to pay. So it doesn’t matter if you owe 20,000 200,000 or million dollars, If you can successfully demonstrate to the IRS that you can only afford to pay $2400, there’s a very good likelihood that you could settle the case for that amount.

It’s kind of hard to believe, and there’s a lot of tax resolution companies out there selling pie-in-the-sky and basically guaranteeing that everyone will qualify for an offer in compromise. I’m here to tell you that that’s not the case. This is a fantastic program for people who are really down on their luck. Maybe you’re temporarily down your lock your unemployed or significantly underemployed, under those circumstances it would be a very good idea most likely to file an offer in compromise.

The program was significantly overhauled in spring of 2012 and we’ve noticed a significant difference in the amount of offers being accepted.  previously offers were very difficult to get accepted in the process took years and years. Now if the IRS does not accept your offer within two years it is deemed accepted UN they lose. This is very uncommon in fact I’ve never seen happen.


I’m often asked why don’t we just call the IRS and ask them if they’ll take $5000 on 50,000 owed? That’s not how it works. This is not typical attorney horse trading like you might imagine happens in personal injury cases. It all boils down to that math equation that I just explain a few moments ago. So all the work is done in arranging your finances such that you have a minimal ability to pay less resulting in a minimal offer amount.  this is all legal moral and ethical, we just help you maximize your allowable expenses and therefore minimize your offer amount.

Despite the fact that IRS tax relief offers are more likely to be accepted nowadays, it’s still a good idea to get help from someone who’s done this before. If you have questions about offers in compromise or how to make a deal with the IRS or really anything having to do with IRS problems, call us at 888-438-6474.