An offer in compromise allows you to settle your tax debt for less than the full amount you owe. How to use this template: 1.Read the background below. 2. Example. You use the cash method of ac- counting. Mortgage lenders ask for a letter of explanation to better understand your finances when determining whether to approve you for a loan. Congratulations on paying off your mortgage with U.S. Bank! Discover what steps you need to take after your mortgage is fully paid off. You, the Buyer (and Co-Buyer, if any), may buy the vehicle below for cash or on credit. This letter is sent to inform you that a Federal Tax Lien has been filed against you and notifies all future creditors that you have an outstanding tax debt. Third bill, quickly, is called the Free File Act.