Tax Attorney Reveals Little-Known Payroll Tax Debt Solution

The Little-Known Solution

One lesser-known strategy that tax attorneys might suggest is the use of the IRS's Offer in Compromise (OIC) program. This program allows eligible taxpayers to settle their tax debt for less than the full amount owed. While often associated with individual tax debt, businesses can also apply for an OIC to address payroll tax liabilities.

Eligibility for an OIC is determined by the taxpayer's ability to pay, income, expenses, and asset equity. The IRS considers the taxpayer's financial situation comprehensively before accepting an offer². Businesses that demonstrate an inability to pay the full tax liability may find this program to be a viable option for reducing their debt burden.