In a recent seminar, Kathy Reyes, IRS supervisor, explains that when filing an Offer in Compromise, the taxpayer must have all tax returns filed, in compliance with current filings, and current with tax payments such as payroll tax deposits and estimated tax payments in order to qualify for an Offer. Compliance check is the first thing IRS reviews upon receiving an Offer and if any of the requirements are not met, the Offer will be returned. IRS may allow one chance to get in compliance before returning the Offer.
Compliance is the key to any tax resolution including Installment Agreements. If you are on an Installment Agreement and owe additional taxes, the Installment Agreement will default. IRS again will likely give you one chance to get in compliance before taking action.
This makes good sense in that the IRS is looking out for the best interest of the government and the taxpayers. Without the taxpayers paying their taxes, we have no government, no military, no social security, no medi-care, no state disability, and schools and roads might not be that great. Taxes go towards so many good things that we have. But if there comes a time when you can not pay your taxes due to hardships, let our office help you get resolution.
