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Q & A - Tax Law
  1. QUESTION: I am unable to pay my delinquent taxes. Will the IRS accept an offer in compromise?

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QUESTION: I am unable to pay my delinquent taxes. Will the IRS accept an offer in compromise?

ANSWER: You may qualify for an offer in compromise ("OIO") if you are unable to pay your taxes in full. An OIO is submitted on Form 656. You will have to specify whether you are filing a lump sum or periodic payment offer. A lump sum offer must pay 20 percent of the offer amount with the application. A lump sum offer means any offer of payments made in five or fewer installments. A taxpayer filing a periodic payment offer must pay the first proposed payment with the offer application and pay additional installments while the IRS is evaluating the offer. You must include a $150 application fee. If you aren't granted an offer in compromise, you may be eligible for an installment agreement.

By: Barry A. Furman, Esq.

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