Basis of the Offer In Compromise Agreement
There are three areas in which a taxpayer can request an offer in compromise agreement These include:
Doubt as to Collectibility, Doubt as to Liability, or Effective Tax Administration
Doubt as to Collectibility means that the taxpayer does not have the availability of funds to pay the full amount of taxes owed. When an offer in compromise is requested it is usually that the vast majority of taxpayers do not have the money to pay. Alternatives to an offer in compromise based on doubt as to collectibility is the primary reason that the vast majority of taxpayers request an offer in compromise. Alternatives to the offer in compromise include installment agreement, a partial-pay installment agreement, or being declared not currently collectable.
Doubt to liability means that the... ...read full post