As former IRS agents and managers it only makes sense for the federal government to accept offers in compromise for those taxpayers to have no chance of paying the debt off. However IRS expects monies to be borrowed from relatives and third parties.
The Internal Revenue Service has a very comprehensive set of standards before offer in compromise will be accepted.
All documentation must be in place. One of the reasons for this is that all offers in compromise that are accepted are placed at the regional sites first public inspection.
The key to getting your offer in compromise accepted his thorough documentation and understanding the process and the standards.
The IRS has very specific policies regarding the acceptance of offers in compromise.
Below you will find the policy statement that covers your policies.
If you need help to get an offer in compromise accepted or needed a second opinion call us today. I am a former IRS agent in teaching instructor of the offer in compromise.
I have 10 years of former experience am a true expert in offers in compromise
1.2.14.1.17 (01-30-1992) Policy Statement 5-100
1. Offers will be accepted
2. The Service will accept an offer in compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential.
An offer in compromise is a legitimate alternative to declaring a case currently not collectible or to a protracted installment agreement.
The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the Government.
3. In cases where an offer in compromise appears to be a viable solution to a tax delinquency, the Service employee assigned the case will discuss the compromise alternative with the taxpayer and, when necessary, assist in preparing the required forms.
The taxpayer will be responsible for initiating the first specific proposal for compromise.
4. The success of the compromise program will be assured only if taxpayers make adequate compromise proposals consistent with their ability to pay and the Service makes prompt and reasonable decisions.
Taxpayers are expected to provide reasonable documentation to verify their ability to pay. The ultimate goal is a compromise which is in the best interest of both the taxpayer and the Service.
Acceptance of an adequate offer will also result in creating for the taxpayer an expectation of and a fresh start toward compliance with all future filing and payment requirements.
If he help with your offer in compromise, call us today for a free initial tax consultation or second opinion.
