IRS Offer in Compromise: How To Get An IRS Offer in Compromise
- Author Jim Trippon
- Published October 12, 2010
- Word count 315
IRS Offer in Compromise
By Houston TX CPA Jim Trippon, on the web at CPAHoustonTX.com
One area my CPA firm in Houston TX gets questions about all the time is the area of an IRS Offer in Compromise. If you turn on the TV almost any time of day, you will see aggressive ads making wild promises about how you can avoid paying the IRS. The reality is that glowing promises made on TV seldom work in the real world. Here is the truth about an IRS Tax Offer in Compromise in Houston, TX.
An Offer in Compromise refers to an agreement between the IRS and an individual taxpayer that settles the current outstanding tax debts for an amount less than currently owed. There are three primary types of Offers in Compromise- Doubt as to collectability, doubt as to liability and effective tax administration.
Doubt to Collectability- If there is reasonable doubt that the individual taxpayer has the capacity now or in the future to pay the current tax liability, this form of an offer to compromise may be a viable option.
Doubt as to Liability- This form of offer to compromise may be an option is there is legitimate doubt that the tax liability is accurate. Examples could include mistakes interpreting the law on the part of the tax examiner, the taxpayer's evidence was not properly considered or new evidence is now available.
Effective Tax Administration- In this instance, there isn't doubt that the taxpayer has the capacity to repay the tax debt or that that tax debt is correct, but rather an exceptional circumstance exists causing the IRS to consider an offer to compromise. Typically, financial hardship or proof that the IRS tax debt collection is either unfair or inequitable must be proven for consideration.
To learn more about how to file an offer in compromise, contact one of our tax professionals.
About the Author: Houston, TX CPA Jim Trippon is the founder of J.M. Trippon & Company, PC a CPA firm in Houston, Texas that works with Houston taxpayers, business owners, and their families. For more information, or for help with IRS negotiations or tax reporting for your business, please contact Houston Texas CPA Jim Trippon at 713-661-1040 or visit his website at www.CPAHoustonTX.com.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The Advantages of Incorporation for Realtors: Safeguarding Your Financial Future
- 10 essential tax-saving strategies for landlords: Maximise your rental income
- A Comprehensive Guide to Navigating the Process and the Role of Customs Brokers in the UK
- Outsourced Accounting Services for UK Businesses: A Cost-Effective Solution for Financial Management
- Top 8 Self Assessment tax return software
- How to Close a Limited Company in the UK
- Maximizing Your Finances: Unleashing the Power of CPA Services
- VAT penalties – New rules
- TAX-FREE STRATEGIES IN AN UNCERTAIN ECONOMY
- 2022 Energy crisis and failure to connect Reality.
- When Are Corporate and Personal Taxes Due in Canada in 2021?
- You Would Never Have Thought That Having Accounting Internship Could Be So Beneficial
- ACTIVATION OF UAN
- Focal motivations behind getting a Tax direct for Small Business Firms
- Avoiding the flood — tax issues with water rights in agribusiness
- Social security benefits for a family (COVID-19)
- How to use QuickBooks Component Repair Tool?
- Do you want to reduce your taxes for next year?
- Will you be responsible with your tax refund?
- Getting started with QuickBooks Enhanced Payroll in Brief
- Are DSTs Right For Your 1031 Exchange
- Tax Return Makeovers By Kenya Woodard
- Why have all crypto tax attempts failed?
- Are You a Corporation? Know Why Consulting a Tax Accountant Is Vital
- Share capital or share premium for your Dutch company?
- Everything investors should know about 1031 sponsors
- Why is the income tax so high in UK?
- Should I do my own tax return?
- Get More Money Back on Your Tax Return with help from the Tax Cuts and Jobs Act
- Don’t Fall Victim to these 3 Tax Scams in 2018