Another type of offer in compromise is based on doubt as to liability. This type of offer in compromise is very different from the one based on doubt as to collectability because you are telling the IRS you do not feel that you do not have to pay the taxes because you are not liable [...]
Offer in Compromise based on Doubt as to Collectability
There are three main types of offers in compromise that you can submit to the IRS. The most common is the offer in compromise based on doubt as to collectability. The essence of this type of offer in compromise is this: you are telling the IRS that you agree that you are liable for the [...]
Can You Add More Years to an Installment Agreement?
One of the ways you can resolve your IRS tax liability is through an installment agreement (monthly payment plan). When you set up your installment agreement, the IRS requires that you include all of the tax years that you owe for in the installment agreement. So, for example, if you owe taxes, penalties and interest [...]
To File or Not to File…On Time
Question:Should I go ahead and file my tax return even though I am unable to pay or should I wait until I can pay for my tax in full to pay for it? I guess I could file for an extension now and pay in October, right? Answer: You should file your 2009 income tax [...]
Submitting an Offer in Compromise
What is involved in submitting an offer in compromise? Is it just a short application? Unfortunately, no. The process of submitting an offer in compromise is fairly tedious. It requires you to complete several in-depth IRS forms about your financial situation to help you (and the IRS) determine if you will qualify for an offer [...]
Question from a Reader: Will the IRS Usually Accept an Offer in Compromise?
Recently, I was asked by a reader: “Will the IRS usually accept an offer in compromise when you owe taxes?” “Usually” is probably not the right word. But, in the right circumstance, the IRS will accept an offer in compromise every time. You must show the IRS that you do not have the future income [...]
Offer in Compromise for Effective Tax Administration
There are several different types of offers in compromise: doubt as to collectability (what we usually talk about and the most common type of offer in compromise which states that you simply do not have the money to be able to full pay your tax debt), doubt as to liability (where you believe you are [...]
Can I File an Offer in Compromise after Setting up an Installment Agreement?
Setting up an Installment agreement can be a challenge, but it is also a great way to resolve some IRS cases. Very simply put, an installment agreement is a way to pay off your tax debt with a monthly payment plan. You may full pay your tax debt or you may not, depending on the [...]
Decision Timeline: How long until the IRS makes a Decision on my Offer in Compromise
Question: I have filed an offer in compromise and want to know what the average time is for the IRS to approve my offer in compromise and finalize the process. Answer: I’m glad that you have filed your offer in compromise and taken the first step towards resolving your tax problems with the IRS. The [...]
Levied without Notice – Say What?!?
I met with a prospective client recently who was having their paycheck garnished by the IRS and didn’t know that it was coming. He was mad to say the least. Upon questioning him a little more, I found out that he had several years of unfiled income tax returns and had moved several times in [...]
