Unfortunately, if they refuse to compromise, I hate to be the bearer of bad news to you (although you have already heard this I am sure) but there are no other options to extinguish the tax debt and it becomes a personal debt that bankruptcy will not extinguish. Thus, they will seek to place liens on property or garnish wages and continue to pursue the debt against you and it is not going to go away and all you can do is continue to increase the amount of your offer in compromise to one they will accept and in the meantime work on establishing some payment plan with them.
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