The IRS will
accept an Offer in Compromise when it is unlikely that the tax liability can be
collected in full and the amount of the IRS Offer in Compromise reasonably
reflects collection potential. An Offer in Compromise is
a legitimate alternative to declaring a case as currently not collectible, or to a
protracted installment agreement. The goal is to achieve collection of
what is potentially collectible at the earliest possible time and at the least cost
to the government.