Latest News & Information

Offers in Compromise

On December 29, 2010, in Offer In Compromise, by admin

Offers in Compromise

Offers in Compromise

Free Online Articles Directory

Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers

Publish Article

0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login

Email

Password

Remember me?
Lost Password?

Home Page > Finance > Taxes > Offers in Compromise

Offers in Compromise

Edit Article |

Posted: Oct 29, 2008 |Comments: 2
| Views: 440 |

]]>

The IRS Offer in Compromise Program authorizes the IRS to compromise outstanding tax obligations with taxpayers with financial hardship for less than the full tax due. What this means is that the IRS negotiates a deal with you to pay what you can afford and forgives any remaining balance.

Historically, the IRS discouraged Offer in Compromises. In 1192, the IRS adopted new policies and procedures to promote taxpayer use of Offer in Compromises and to streamline the handling of cases. However, IRS agents are now more lenient and willing to accept Offer in Compromises than in the past.

Individuals, married couples, and business entities, such as corporations and partnerships may file an Offer in Compromise.

Many types of taxes such as personal income taxes, corporate income taxes, estate taxes, and payroll taxes may be compromised. The Franchise Tax Board also has a similar program for state taxes. You may negotiate not only the tax but also the penalties and interest.

If you are a taxpayer who is unable to pay the full tax liability due to a financial hardship and you believe that the IRS would not be able to collect the taxes through a collection procedure or where there is doubt about your tax liability the Offer in Compromise program may be the solution to your tax problem.

What’s great about this program is that the compromised amount may be paid in one lump sum payment, in installment payments, or through a combination of a lump sum payment and installment payments.

To file an Offer in Compromise, you must submit appropriate IRS forms and provide comprehensive financial statements to the IRS. These forms must be completed correctly in order to increase your chance of negotiating a good settlement amount.

Retrieved from “http://www.articlesbase.com/taxes-articles/offers-in-compromise-620713.html”

(ArticlesBase SC #620713)

Liked this article? Click here to publish it on your website or blog, it’s free and easy!

Steven Sears -
About the Author:

Steven Sears, Attorney and CPA offers Asset Protection and other services in Irvine, CA. For more information, visit: http://www.corpadvisor.com

]]>

Questions and Answers

Ask our experts your Taxes related questions here…200 Characters left

How long does irs keep tax records ?
I’ve completely forgotten my password to my extremely important, password-protected MS Word Document. It’s saved in Word 1997-2003 format. Is there ANY possible way I can open this document??
My fiance had his cpa do his taxes for the last 3 years but he has not filed them with the IRS . He does not know what to do he is self employed electrician and has no savings. what should he do?

Rate this Article

1
2
3
4
5

vote(s)
10 vote(s)