This is a separate negotiation procedure and will only focus on the taxpayer's ability to pay the tax due. The IRS will then review the offer and answer whether they will accept the proposal. The end result is that the taxpayer and the IRS agrees to a payment plan. Typically, the IRS has been reasonable in negotiating this type of procedure. The third form of action a taxpayer can take is to appeal the decision.
Lets look at the option very carefully.
There are various avenues a taxpayer can take to appeal a decision made by an IRS examiner. Procedures for an appeal are explained in a letter from the person conducting the audit. However, the field auditor can change any mistakes that were made during the audit. Therefore, it is very important to fully understand the auditor's findings. It is not uncommon to see mistakes in the auditor's findings.