IRS accepts 38% of all offers in compromise filed.
However……
The majority of those offers in compromise that are rejected are based on the fact they don’t meet the current standards and criteria that IRS looks for to be accepted.
I should know, I am a former IRS agent/ revenue officer that both worked the program and taught the program as a former IRS agent.
Now in private practice, many taxpayers come to me seeking representation and want to settle their tax debt through an offer in compromise but because of how their assessment or liability arose, they will be unable to settle their tax debt through the offer in compromise.
It is important to know that all offers in compromise and are accepted are placed in the district office for public review.
Anyone can go into a district office and speak to a manager and asked to inspect all offers in compromise that have been asked accepted via the Internal Revenue Service.
With that in mind, the Internal Revenue Service reserves the right to reject an offer compromise based on public policy.
An offer compromise that is rejected because of public policy is rejected because it would undermine compliance with the tax laws.
An example of this would be someone who is laundered money, the IRS set up a tax assessment and that taxpayer is wanting to settle their debt. No way!
There are a multitude of reasons that IRS may reject an offer in compromise based on public policy.
Call us today for free initial tax consultation and we may be able to show you ways that you can address your situation IRS and get your offer accepted if possible,.
Below you will find the IRS policy statement regarding the public policy
IRS Policy Statement 5-89
1.2.14.1.15 (07-26-1960)
Policy Statement 5-89
Offer may be rejected for public policy reasons
If the acceptance of an offer might in any way be detrimental to the Government’s interests, it may be rejected even though it is shown conclusively that the amounts offered are greater than could reasonably be collected in any other manner.
