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What is an Offer in Compromise in Jacksonville?
March 1st, 2023
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News & Politics
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3 minute read
What is an Offer in Compromise in Jacksonville?
Jacksonville, FL - There are times when a person filing their taxes is unable to pay the total amount due to the government, or they want to dispute this amount. A process to settle the outstanding debt with the IRS is called an offer in compromise. After the debt is settled, the person can either make payments over the course of two years, or agree to make larger payments over a much shorter period of time. Lawyers can always give additional advice about remaining compliant with tax laws and regulations. They can also give advice regarding whether it is beneficial for the person to go through with the offer process versus simply paying their tax bill. So it can be helpful to get assistance from Jacksonville tax lawyers during the offer to compromise process.Reasons why the government may accept an offer in compromiseThere are a few times when an offer in compromise may be helpful and the IRS can agree to accept a different amount than what they consider the person’s standard tax liability. This can happen if they think they are unlikely to be able to actually collect the person’s outstanding tax debt. There are also offers in compromise when there are questions regarding whether the information about the outstanding tax amount is correct or not. In some cases, the IRS may have equitable concerns about forcing a person to pay a tax bill that they cannot afford. However, any individual or business with an ongoing bankruptcy case is never eligible for this offer to compromise process.
Exterior of the Internal Revenue Service office in midtown New York; Matthew G. Bisanz, CC BY-SA 3.0, via Wikimedia Commons, no changes.
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