An "offer in compromise" is a tax payment option that the IRS makes available to taxpayers who cannot pay an income tax debt in full and for whom an installment agreement is not feasible. Legally, a debt can be compromised if:
If all other payment arrangements are not possible, you can ask the IRS to consider an offer in compromise. For the IRS to process your "offer", you must satisfy several requirements:
You should know the following when submitting an offer in compromise:
The requirements for an offer in compromise are lengthy and can be complicating. A tax attorney familiar with federal income tax laws can assess your tax burdens and help determine if an offer in compromise is right for you. The attorney can also help you complete and submit your offer to the IRS.
Last Modified: 01-04-2016 01:44 PM PSTLaw Library Disclaimer
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