The situation
After his auto repair shop closed, Greg in Tennessee was left with about $58,000 in IRS debt and few assets to show for years of work. He had taken a modest wage job, and his income barely covered his living expenses. A full-balance payment plan was out of reach, and the debt was a constant weight.
What we did
- We confirmed full compliance — all returns filed and current on withholding — which is a precondition for any offer.
- We calculated his reasonable collection potential, documenting low income, allowable expenses, and minimal asset equity.
- We prepared an Offer in Compromise based on doubt as to collectibility and assembled a complete, supportable package.
- We kept the file complete and responsive so the offer would not be returned, and prepared to appeal if needed.
The outcome
The IRS accepted a settlement of $4,500 against the $58,000 balance. Once paid, the rest was permanently forgiven. Greg started fresh without a five-figure tax debt hanging over the rebuild of his finances.
Settlement amounts follow the formula
An accepted offer reflects what the IRS could realistically collect from your income and assets. Genuine inability to pay, fully documented, is what makes a low settlement possible.
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About these stories
Illustrative client scenarios based on common case types. Individual results vary. These scenarios are composites drawn from common case types we handle at US Certified Tax Services; they are not specific named clients and are provided for illustration only. Outcomes depend on your individual facts and IRS determinations. For a review of your situation, request a free consultation.