Offer In Compromise

Offer in Compromise is program developed by Congress to promote collecting large amounts of unpaid taxes in a relatively short period of time. The idea was to offer taxpayers a one-time opportunity to eliminate their debt for a portion of what was originally owed, thus closing millions of costly collection cases. At present, the program is one of the most effective means for both taxpayer and IRS to bring permanent resolution.

An offer in compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to "compromise", that is to settle, federal tax liabilities by accepting less than full payment under certain circumstances. According to IRS, a tax debt can be legally compromised for one of the following reasons:

• Doubt as to Liability - Doubt exists that the assessed tax is correct.
• Doubt as to Collectibility - Doubt exists that you could ever pay the full amount of tax owed.
• Effective Tax Administration - There is no doubt the tax is correct, and no doubt that the amount owed could be collected, but an exceptional circumstance exists that allows the IRS to consider a taxpayer's Offer in Compromise. To be eligible for a compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.

Intrigued? Well, here is your chance. With some preliminary information Los Angeles Tax Attorneys will assess your situation to determine if you qualify for the Offer in Compromise program. If you don't, our tax attorneys will explain why and recommend an alternate solution to your tax problem.

It’s worth mentioning that because of the popularity of the program, millions of unfounded cases were submitted, complicating the process. Now, IRS scrutinizes and examines each case to the dollar. So any tiny miscalculation may dramatically inflate the amount offered, or, even worse, cause rejection of the Offer in Compromise. Fortunately, our tax attorneys have vast experience and know all the implications of the program. Because we use the same formulas and guidelines as the IRS, we are able to assess the lowest possible amount the IRS will accept before it is submitted, thus eliminating the guesswork and worry.

Get your taxes compromised with Los Angeles Tax Attorneys!

Related content about offer in compromise can also be viewed at TaxHelpers.com