The Internal Revenue Service (IRS) will now return without consideration any Offer in Compromise applications submitted by taxpayers who have not filed all required tax returns. The application fee will be returned to the taxpayer, but any initial payment submitted with the returned application will be applied to outstanding tax debt. An updated Offer in Compromise Booklet (Form 656-B) reflecting this policy change will be available March 27, 2017 here.
IRS Updates Offer in Compromise Policy
Revision to IRS Offer in Compromise Procedures
Are you submitting an Offer in Compromise (OIC) application to the Internal Revenue Service? Make sure all your tax returns have been filed! Effective immediately, the IRS will be returning any newly filed OIC applications if the taxpayer involved has not yet come current on filing tax returns.
VIDEO: Common tax issues faced by individuals and businesses
Many individuals come to our firm for assistance handling tax issues after being audited by the IRS. They may need help proving that the tax return they filed was correct, or they may need help arranging an installment agreement, an offer in compromise, or another alternative if they don't dispute that they owe the tax.
Ways to handle California tax debt
There are times when taxpayers are unable to meet their tax obligations to their home state. Just as the federal government has ways for individuals and businesses to deal with tax debt, states do as well. There are four main ways used by most states, including California, to handle back taxes.
IRS to Raise User Fees for Installment Agreements and Offers in Compromise
The IRS has issued proposed regulations to raise the user fees for installment agreements and offers in compromise on January 1, 2014. For more information, click here.
