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Allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. The IRS or State will consider your unique set of facts and circumstances: Ability to pay, Income, Expenses, and Asset Equity. They generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time.
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