David Kirkpatrick

August 4, 2010

Looking way ahead …

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 6:28 pm

… all the way to next year’s tax season. Here’s some tips on using an offer in compromise on your total tax bill from the IRS. This is a tough, tough year and it doesn’t hurt to begin reviewing your options this early.

From the AICPA link:

In these economic times, more taxpayers are not able to fully pay their federal income taxes when due. There are several methods that may be used to pay tax liabilities in this situation, one of which is an offer in compromise (OIC).

Sec. 7122 permits the IRS to compromise a tax liability on one of the following grounds:

  • Doubt as to liability;
  • Doubt as to collectability; or
  • To promote effective tax administration because either collection of the full amount would cause economic hardship for the taxpayer or compelling public policy or equity considerations provide a sufficient basis for compromising the liability.