Tax Tip 2021-60: An offer in compromise may help some taxpayers settle their tax bill

IRS Tax Tips May 3, 2021
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number: Tax Tip 2021-60 An offer in compromise may help some taxpayers settle their tax bill Individual taxpayers and business owners can use the IRS's recently updated Offer in Compromise Booklet to learn how an offer in compromise works and decide if it could help them resolve their tax debt.   An offer in compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. An offer in compromise is an option when a taxpayer can't pay their full tax liability. It is also an option when paying the entire tax bill would cause the taxpayer a financial hardship. The goal is a compromise that suits the best interest of both the taxpayer and the agency.  When reviewing applications, the IRS considers the taxpayer's unique set of facts and any special circumstances affecting the taxpayer's ability to pay as well as the taxpayer's: Income Expenses Asset equity The booklet covers everything a taxpayer needs to know about submitting an offer in compromise, including: Who is eligible to submit an offer How much it costs to apply How the application process works The booklet also includes the forms that taxpayers must complete as part of the Offer in Compromise process. The current application fee is $205. However, taxpayers who meet the definition of a low-income taxpayer don't have to pay this fee.     More information: Offer In Compromise Pre-Qualifier tool Share this tip on social media -- #IRSTaxTip: An offer in compromise may help some taxpayers settle their tax bill. https://go.usa.gov/xHmDJ Back to Top         Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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