2007-05-17 08:08:01 · 6 answers · asked by VL 3000 1 in Business & Finance ➔ Taxes ➔ United States
Actually, the second post is correct and the first is a little off. An offer and compromise is a settlement with the IRS for less than the amount assessed. Offers and Compromise are actually harder to get after the new commissioner took office in 2006. However, it is easier to set up payment plans (which I believe is what the first post was actually referring to). The difference is that you will pay the full amount owed under a payment plan.
To answer the second part of your question, yes the average person can do it but be prepared because Agents will try to intimidate you more than they would a tax pro. Try contacting the IRS Taxpayer Advocate to dicuss if you like, but always remember they work for the IRS at the end of the day...
2007-05-17 08:39:58 · answer #1 · answered by Gooch 2 · 0⤊ 0⤋
As others have said, an Offer in Compromise is a request to settle your tax debt for less than you owe. If the IRS believes you can afford to make payments or sell assets, your offer WILL be rejected. The average person can complete the forms. Determining how much the IRS will decide you can pay is another matter.
2007-05-17 11:36:46 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Offer and Compromise is a program that design for people that can't pay the full amount that they owe to the IRS. And the rules are very strict. It's not easy to be an offer and compromise candidate. You can do it yourself but most of the time a person does it himself application doesn't get approved. That's why they have started to charge an application fee for $125 a year or two ago because there are just so many people apply for it and not knowing what they are doing. As I recalled, they had rejected majority of the self-prepared applications in the past.
2007-05-17 08:53:00 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If you owe under $10,000, any sort of settlement offer on your part will probably be rejected. You should enter in to an installment agreement and stick to it.
If you owe over $10,000, you may qualify for an offer in compromise. You can do them on your own but they are rather cumbersome and time consuming. If the IRS agrees that you do not have the ability to pay, they may accept a offer in compromise. Also, the IRS has up to 2 years to decide on your offer and they say "No" over 85% of the time.
2007-05-17 09:13:51 · answer #4 · answered by Wayne Z 7 · 2⤊ 0⤋
Offer in compromise is where you are asking the IRS to settle for less than you owe them in taxes for a given year, or series of years. Yes the average person can do it, but you may want to get a tax professional to assist you with it. I've included the irs link regarding offer in compromise
2007-05-17 08:14:52 · answer #5 · answered by Anonymous · 2⤊ 0⤋
The IRS will work with you to make payment arrangements or a reduced lump sum. Call the IRS and speak with them. I have had two friends call the IRS and make payment arrangements. The attitude at the IRS has changed and become a lot more tax payer friendly.
2007-05-17 08:11:54 · answer #6 · answered by msbedouin 4 · 0⤊ 0⤋