Will The IRS Accept Less Than They Demand?

Maybe, through an “Offer in Compromise.” An Offer in Compromise is an offer to pay less than the full amount the internal revenue service claims you owe. The IRS might accept the offer if you convince them that there is “doubt as to liability,” “doubt as to collectibility,” or “for effective tax administration.” While the offer is pending, the internal revenue service will normally not take any collection action – unless they feel the offer was submitted merely to delay collection. The Statute of Limitations for collection is normally ten years, but it is extended while the IRS reviews the offer.

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