Where individuals and businesses owe IRS taxes, the IRS has a settlement program where it can legally accept less than what is owed. Known as an “Offer in Compromise,” Congress has given the IRS the authority to “compromise” and reduce a tax debt owed to it, but only under very specific terms. The IRS does not have other programs or alternatives where it can accept less tax than what is owed – only the Offer in Compromise.
The IRS Offer in Compromise program has been in effect for many years, but the program has changed. Many individuals and businesses file their own Offers in Compromise with the IRS and without understanding the requirements for an Offer and including the unpublished policies and practices of IRS Offer in Compromise reviewers. The vast majority of Offers in Compromise are rejected by the IRS for this reason.
Generally, the IRS will not even consider an Offer in Compromise unless an individual or business has first filed all his/her/its required tax returns, and is able to prove to the IRS the individual or business is…
Leave a Reply
You must be logged in to post a comment.