It can be a legitimate option if you can't pay. An economic difficulty occurs when we have determined that the tax prevents you from covering your basic and reasonable living expenses. For the IRS to determine if a lien is causing economic hardship, it will generally need you to provide us with financial information, so be prepared to provide it to you when you call. A transaction offer allows taxpayers to settle their tax debt for less than the total amount they owe.
This may be an option if they can't pay their tax obligations in full or if it creates financial difficulties for them. The IRS considers the taxpayer's unique set of facts and circumstances when deciding whether to accept an offer. If you propose a payment amount that the CSED will not pay in full, you will be required to complete a financial statement and provide financial information that supports the PPIA. If the IRS determines that you can't pay any of your tax debts due to financial difficulties, you can temporarily delay collection by stating that your account is currently uncollectible until your financial situation improves.
Contact the IRS immediately by calling the phone number listed on the tax or in the correspondence and explain your financial situation to them. As part of the accepted offer agreement, the IRS will keep any refunds, including interest, of taxes due until the date the IRS accepts the offer. It can be a legitimate option if you can't pay all of your tax obligations or if doing so creates financial difficulties for you. You may need to provide a new financial statement and supporting financial information during this review.