Offer in Compromise
In some cases, the IRS will accept as little as one percent of the amount owed on a tax bill from taxpayers who qualify for an Offer In Compromise. In order to qualify, the taxpayer must:
Demonstrate that collecting the tax bill is in doubt, both now and in the future. This is a process known as “doubt as to collectability.”
Provide evidence that paying the bill would be unfair, inequitable or cause economic hardship for the taxpayer.
Demonstrate that the tax liability assessed is incorrect, otherwise known as “doubt as to liability.”
In order to show an incorrect assessment, the taxpayer must file Form 656-L, and some experts say that this option is often more difficult to pursue when requesting an Offer in Compromise.
more information about the offer in compromise
Steps to Follow
The first step in requesting an Offer in Compromise is completion of IRS Form 656, which must be filed with a $150 application fee. The fee may be... ...read full post