Offer in Compromise
An Offer in Compromise is a negotiated agreement between a taxpayer and the Internal Revenue Service (IRS) that allows the taxpayer to settle the taxpayer's liabilities for less than the full amount owed. There are several reasons the IRS will accept such a compromise. These are noted below
Know Your Legal Rights and Options
The IRS may accept an Offer in Compromise for three reasons:
Doubt as to Collectibility - The IRS doubts that the taxpayer would ever have the financial capability to pay the full amount owed within the time frame of the statutory period for collection (typically ten years from date of assessment).
Doubt as to Liability - There is doubt that the amount of tax liability assessed is correct. There are several reasons doubt may exist: Among them, the tax examiner may have been incorrect in interpreting the law; the tax examiner did not consider the taxpayer's evidence or; there is new evidence available from the taxpayer.
Effective Tax Administration - The tax is correct but an exceptional circumstance exists to demonstrate that the collection of the unpaid tax would create an economic hardship or would be unfair or inequitable.
IRS collection, enforcement measures, and taxpayer remedies are based on federal law. That is why it's vital that you have a team of experienced tax relief specialists and attorneys working alongside you - professionals who understand how to make the law work for you - so you can secure the most favorable tax resolution possible.