Offer in Compromise - Blog Pinker - World News Blog Website and Articles

Offer in Compromise

Wednesday, 30 August 2006

All you need to Know about Offer in Compromise: If you want to keep your situation with the IRS in manageable limits, then offer in compromise (OIC) is something you must have knowledge of. When taxpayers are unable to pay a tax debt in full they can benefit from OIC without offending IRS. OIC is an agreement between the taxpayer and the IRS which allows the taxpayer to pay up to a certain amount and the rest is compromised by the IRS.

Although it’s a responsibility of every citizen to pay their taxes in full, if somehow they are unable to pay their tax on the specified date then IRS can be notified of this situation. If the taxpayer is not taking the payment of tax as a serious responsibility then IRS can take serious actions to enforce tax payment.

To avoid such situations one must fully acquire knowledge of the advantages of options available to him. Sometimes such matters can be resolved by using the installments agreement, but in some rare cases installment agreement is not offered to the taxpayer. Furthermore if the taxpayer is unable to pay even the installment then this agreement is of no use to him.

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