$135,000 IRS Tax Debt Settled for $4,380 Through Offer in Compromise

$135,000 IRS Tax Debt Settled for $4,380 Through Offer in Compromise

SITUATION:

The client carried $135,000 in IRS tax debt from tax years 2015–2021, primarily due to insufficient withholdings. After her mother’s passing, she became the primary caregiver for her two disabled sisters, a responsibility that placed enormous financial strain on her. With the IRS threatening potential levies and garnishments, she sought help from CuraDebt to safeguard her income and find a realistic path forward.

INVESTIGATION PHASE:

Our team conducted a thorough evaluation of her finances, taking into account her caregiving responsibilities and limited resources.

Key actions included:

  • Financial Assessment: Determined that her modest income and high caregiving-related expenses left no ability to make regular IRS payments.
  • Offer in Compromise Strategy: Developed a settlement proposal that reflected both her financial hardship and her caregiving obligations.
  • Supporting Documentation: Collected and submitted detailed financial records and personal documentation to strengthen her case with the IRS.

COMPLIANCE PHASE:

Since the client was already current on all tax filings, this phase focused on ensuring accuracy of records and verifying that all requirements for Offer in Compromise submission were met.

RESOLUTION PHASE:

After careful preparation and submission, the IRS accepted her Offer in Compromise, settling her $135,000 tax debt for $4,380 to be paid in five installments.

Case Outcome:

  • Total Amount Owed: $135,000
  • Resolution: Offer in Compromise
  • Settled Amount: $4,380 (paid in 5 installments)
  • Phases Worked: Investigation, Compliance & Resolution

This resolution reduced her debt to a fraction of the original amount, immediately halting collection threats and giving her peace of mind. Most importantly, it allowed her to continue caring for her sisters without the constant burden of IRS debt, providing both financial relief and long-term stability.

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DISCLAIMER:
This example reflects a real client outcome. Every case is unique, and results may vary. Enrollment in our program does not guarantee a similar resolution. Our experienced tax team—which includes former IRS employees, enrolled agents, tax attorneys, and CPAs—works diligently to achieve the best possible outcome for each client. Our goal is to ensure you pay the lowest amount legally required based on your individual circumstances, finances, and allowable deductions.