Irs And Offer In Compromise - article about Irs And Offer In Compromise

IRS and Offer In Compromise

An Offer in Compromise is when a person owes a large sum of taxes and is unable to pay the full amount owed, and is not in a position to ever make the full payment. What the person does have, however, is a sum of money they are willing to pay with the idea that if they pay a lump some the IRS will cancel out the rest of the debt. Now, hold on, the lump sum you pay not be what is acceptable to you. If you have a $10,000.00 bill and you want to pay an offer in compromise of $7,000.00, but you have $25,000.00 in the bank, earn $45,000.00 a year and your yearly expenses are only $41,000.00, there is no way the offer will be accepted. The offer in compromise is only accepted when there is legitimate financial considerations that make paying the whole amount owed an impossibility.

In order to make sure the tax payer is being honest, the tax payer must fully disclose all finances and show on paper that they are unable to make full payment and are willing to make the largest lump sum payment they are able to without suffering additional financial hardship. While some people may stress out over this, if the IRS was unwilling to accept an offer, they would not have such an offer available as an option. In fact, the IRS is fairly open to helping those in need and should be fairly accommodating.

<a href="http://www.refresharticles.com/articles/taxes/irs_and_offer_in_compromise.txt">Irs And Offer In Compromise</a>