Every month you wait, the IRS adds a 0.5% penalty on top of daily interest, and that clock keeps running until the penalty reaches 25% of what you owe.
MD Sullivan Tax Group delivers IRS tax debt settlement for individuals and business owners nationwide. We’re a team of tax attorneys, CPAs, enrolled agents, and former IRS agents with 130+ years of combined IRS experience.
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Can You Really Settle Tax Debt With the IRS?
Yes, when the IRS agrees you cannot pay the full balance before its collection deadline. The IRS has 10 years from the date it assesses a tax to collect it.
The formal route is an Offer in Compromise (OIC), a written proposal to pay less than the full amount. The IRS measures your offer against your reasonable collection potential: the equity in your assets plus the income you have left after living expenses. Your offer generally has to match or beat that figure.
Most people who ask about settlement do not qualify. We review your numbers first and tell you so. If another program fits better, we point you there.
Who Can Settle IRS Debt for Less Than You Owe?
Settlement fits people whose assets and future income cannot realistically cover the debt. The IRS also requires:
- All required tax returns filed
- Estimated tax payments for the current year made
- No open bankruptcy case
- A balance your assets and future income cannot cover
The IRS OIC Pre-Qualifier tool gives a quick first check, but it only knows the numbers you type in. We work from your actual IRS records and test them against the way the IRS calculates offers.
| Heading: Owe More Than You Could Ever Repay?
Body: The IRS can accept less when the math says you cannot pay in full. Find out if an IRS tax debt settlement applies to you, free and with no obligation. CTA: High-Dollar Debt? Let’s Find A Solution! |
What Our IRS Tax Debt Settlement Service Includes
You hand us the IRS notices. You get back a filed case and one point of contact.
- Transcript review. We pull your IRS account and wage and income transcripts, the records that show what the IRS says you owe, year by year.
- Collection potential calculation. We work out your number with the IRS formula before anything is filed.
- Application preparation. We prepare Form 656, the Offer in Compromise application, plus Form 433-A (OIC), the financial statement that backs it up.
- Missing returns. We file unfiled returns so you meet the IRS’s eligibility rules.
- Power of attorney. Once you sign Form 2848, the IRS deals with us, not you.
- Negotiation and follow-up. We answer IRS questions and push your case until you get a decision.
- A backup plan. If the IRS says no, we appeal when your case supports it or move you to another program.
| Heading: Stop Losing Sleep Over That IRS Letter
Body: A team with 130+ years of combined IRS experience reads it, runs your numbers, and speaks to the IRS for you. Start with IRS tax debt settlement or a program that fits you better. CTA: Let Us Take The Debt Off Your Shoulders! |
How We Get You Out From Under IRS Debt, Step by Step
Five moves, in this order, are how we settle tax debt with the IRS for clients who qualify.
1. We Read What the IRS Already Knows
Transcripts show your balance by year, every penalty, unfiled returns, and any lien. You see the same picture the IRS sees, so nothing surprises you later.
2. We Run the IRS’s Own Formula
We calculate your reasonable collection potential the way the IRS does. You see the number before you commit to anything.
3. We Match You to the Program That Fits
Settlement, an installment agreement, hardship status, or penalty relief. We pick the one your numbers support, not the one that sounds best in an ad.
4. We File It Once, Correctly
The IRS returns incomplete applications, and every return costs you weeks. We check each form, the $205 application fee, the initial payment, and your filing compliance before anything goes in.
5. We Stand Between You and the IRS
Calls, letters, and requests for more paperwork come to us. After acceptance, we keep you on track through the five-year compliance period so the debt stays gone.
How Long Settlement Takes
Expect six months to a year in most cases, depending on complexity. If the IRS does not decide within 24 months, the law treats your offer as accepted.
While your offer is under review, the IRS generally pauses levies, which are seizures of wages or bank accounts. It can still file a tax lien, a legal claim against your property.
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Why Choose MD Sullivan Tax Group for IRS Tax Debt Settlement
You are choosing who sits across the table from the IRS. Here is what our team puts there.
- 130+ years of combined IRS experience, including former IRS agents who worked collection cases from the inside.
- Attorneys, CPAs, enrolled agents, and former IRS agents on one team, so your case lands with the specialist it needs.
- Nationwide representation for federal and state tax problems.
- You never deal with the IRS directly. We represent you and keep your case confidential.
- Honest numbers first. We tell you when settlement will not work; before you pay for an application, the IRS will reject it.
- A founder who has worked both sides. Michael Sullivan is a former IRS Revenue Officer and settlement specialist, and he has practiced privately for more than 40 years.
- A founder the media calls on. Michael co-authored an Amazon #1-ranked IRS guide and has appeared on Fox Business and NBC as a tax expert.
| Let The Former IRS Agents Be Your Side |
What Clients Say After Learning How to Get IRS Tax Relief
Each person below started with a stack of IRS notices and one question. Here is what happened after they called us.
Other IRS Tax Relief Programs That May Fit Better
Settlement covers a narrow group. If your income or assets are too high for an offer, one of these usually works instead:
- Installment agreement: monthly payments when you can pay in full, just not all at once.
- Currently Not Collectible status: the IRS pauses collection when paying would leave you unable to cover basic living costs.
- Penalty abatement: removes penalties for a clean filing history (first-time) or a valid reason (reasonable cause).
- Innocent spouse relief: frees you from tax debt created by a spouse or ex-spouse.
We compare every option against your numbers and recommend the strongest one.
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How to Get IRS Tax Relief Without Falling for a Scam
Ads promising “pennies on the dollar” target people who are scared. Walk away from any firm that:
- Promises a result before it has seen your numbers
- Charges a large fee before reviewing your finances
- Guarantees what the IRS will accept
- Pushes you to apply today, before checking whether you qualify
Your IRS Balance Has a Number. Let’s Find the Right Relief.
The IRS already knows what it thinks you owe. What you do not know yet is what it can legally accept.
IRS tax debt settlement works when the numbers are honest, and the paperwork is flawless. We bring both, backed by 130+ years of combined IRS experience and a team that has worked the IRS’s side of the table.
One call tells you whether you qualify, which program fits, and what happens next.
Approval is decided by the IRS, and outcomes depend on your individual finances and filing history. We review your case honestly before recommending any program.
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FAQs
Yes, through an Offer in Compromise, but only when the IRS agrees you cannot pay the full amount before the collection period ends. The IRS works out your reasonable collection potential, meaning your equity in assets plus future spare income. Your offer generally has to be at least that number.
People whose assets and future income cannot realistically cover the debt. You must have filed all required returns, made any required estimated payments for the current year, and not be in an open bankruptcy. The IRS Offer in Compromise Pre-Qualifier tool gives a quick first check.
The application fee is $205. You also send an initial payment: 20% of the offer amount for a lump-sum offer, or the first monthly payment for a periodic offer. Both are non-refundable and are applied to your tax debt. Low-income applicants can have both waived.
Often six months to a year, depending on complexity. If the IRS does not decide within 24 months, the offer is treated as accepted by law. While it is under review, the IRS generally pauses levies, but it may still file a tax lien.
You must pay the agreed amount on time, then file and pay all taxes on time for the next five years. Missing those rules can revive the full original debt. The IRS also keeps any refund for the year your offer was accepted. Once paid, your tax liens are released.
Be careful. The IRS put so-called 'OIC mills', which overpromise settlements and charge high fees to people who do not qualify, on its 2026 Dirty Dozen list of scams. A real settlement follows a set IRS formula. An honest review of your numbers should come before any promise.
Installment agreements, Currently Not Collectible (hardship) status, first-time penalty abatement, reasonable-cause penalty relief, and innocent spouse relief. Many people who ask about settling end up better served by one of these, especially if their income or assets are too high for an offer.
