Offer In Compromise Help - Your Source For Free, Honest Advice about the IRS Offer in Compromise Program

How Much Does an Offer in Compromise Cost?

The IRS charges a $150 filing fee when submitting an Offer in Compromise. This filing fee is non-refundable and it is not applied towards any taxes that you owe.

If you fall below certain income limits, you may be exempt from this filing fee. The income limits change each year so you should check with the IRS to determine if you are eligible for this exemption.

For 2009 a household of one with monthly income of $2,256 or less was exempt from the filing fee and the down payment requirements. In general, you add $779 to that number for each additional person who is in the household.

How Much Does it Cost to Hire Someone to Negotiate an Offer in Compromise for Me?

Many people use a tax resolution company to negotiate an Offer in Compromise for them. This can be beneficial both because of their expertise and experience with the Offer in Compromise program.

Every company charges their clients in a different way -- hourly, flat-fee, etc. and so it is hard to give a definitive answer on how much a tax resolution company will charge you for an Offer in Compromise.  In general, you should expect to spend at least $3,000 - $4,000. Of course, you must consider how much money that company will save you to decide whether or not it is worth this cost. We also highly recommend that you thoroughly research any company that you consider hiring to ensure that your investment is used wisely.  Even something simple like Googling a company's name can reveal a lot about their reputation.