Offer in Compromise
Effective Tax Administration
The IRS has the Duty to be Fair
Congress requires the IRS to foster voluntary tax compliance. Fair actions by the IRS can foster compliance, while unfair actions can reduce it. This concept is called “Effective Tax Administration.”
Normally you have to pay your taxes when you have the means to do so. But there are cases in which it would be unfair to make someone pay all taxes in full. For example, a taxpayer might end up destitute after paying all assessed taxes. The IRS could tarnish its image if it insisted that such a person pays all taxes in full.
It is rare to see an Offer in Compromise – Effective Tax Administration (IRS link) approved. Do you qualify? First, you can only qualify if you have the means to pay your tax debt. Can you expect your case on the front page of the regional newspapers if the IRS insists on you paying in full? Then you might have a good case for this kind of Offer in Compromise.
Contact us to discuss your situation!