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 [...]
Archive | Offer in Compromise RSS feed for this section
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 [...]
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 [...]
Do I Have to Pay Money when I Submit my Offer in Compromise to the IRS
In the good ole days you could submit your offer in compromise to the IRS and it wouldn’t cost you anything except a filing fee. So, it didn’t matter how much you were offering to settle your tax debt with the IRS you knew that you were going to have several months before the IRS [...]
Submitting an IRS Offer in Compromise after Divorce
Going through a divorce can muddy the waters when it comes to whose responsibility the IRS tax liability becomes. In a divorce case, the Court could order that one party of the other is solely responsible for the tax liability. However, because a family court is a state court it does not have authority to [...]
Do I have to provide Bank Statements to the IRS
When you are filing an offer in compromise with the IRS you have to give the IRS a lot of financial information and proof. They want to see the last three months of bank statements, pay stubs, utility bills, investment account statements, medical bills and more. You can almost picture the offer in compromise program [...]
