Good news in the United States: SSA confirms you'll pay much less if you do this

If you have a problem with Social Security in the United States, you can now choose an ideal option offered by the IRS to address it. This method allows you to pay an amount lower than what you owe to the SSA and you can do it easily.

The so-called offer in compromise is an agreement that allows a taxpayer who owes money to SSA to pay less than the original debt. The SSA can accept a debt settlement when they can't collect the full amount, or when the debtor's financial situation makes it impossible to pay it off. Additionally, if collecting the full debt costs more than what is recovered, SSA can offer a deal.

This Is How the IRS Offer in Compromise Works: Agreement With Social Security

As a taxpayer, you propose an amount you can reasonably pay and it must be based on your income, assets, and expenses. SSA reviews whether you actually have the ability to pay off the debt within a reasonable time. If they determine that you can't, or that they won't get the full amount through costly legal procedures, they may accept the offer.

In practice, many of these agreements work as follows: if the amount you offer is around 80% of what you owe, it's very likely to be accepted. This is due to internal rules that aim to facilitate payments and reduce administrative burden.

Once accepted, the offer must be paid, usually within 30 days in a single payment. They can also agree to payments in several installments, but that depends on the taxpayer's ability and the discretion of the SSA.

This agreement relieves certain taxpayers who, for example, have a small pension, low income, or high expenses. In those cases, paying 100% could take years – with an agreement, you pay off the debt in months and regain financial control.

Other Details You Should Know About the Offer in Compromise

If the debt exceeds $100,000 USD, SSA must refer it to the Department of Justice, which will decide on the offer. Acceptance is not a right: it depends on financial analysis. SSA can deny, delay, or require more information.

If you fail to make the payments under the agreement, SSA can reinstate the full debt and resume collection actions. There is no right to appeal: these offers are discretionary.

There are also options such as suspension or termination of collection. Even modification of the recovery rate (even less than 10% per month), if you don't choose the offer.

If you owe money to SSA, you can submit an offer in compromise proposing to pay less than the total amount. This way, a taxpayer can settle their debt more quickly and affordably, reducing financial pressure.