Advantages and Disadvantages of Offer In Compromise. 
FIVE MAJOR ADVANTAGES OF OFFERS:
1) Paying less than the full tax liability;
2) Levies and asset seizures are stayed while IRS evaluates;
3) Finality;
4) Tax Liens are released if IRS accepts the offer; and
5) IRS must accept offer if not rejected within 24 months.
THREE MAJOR DISADVANTAGES OF OFFERS:
1) Taxpayer must disclose all financial information to the IRS;
2) Offer stays collection and assessment statutes of limitations;
3) Nonrefundability of payments made with offer.
WHEN WILL OFFER NOT WORK?
1) If taxpayer is in bankruptcy;
2) Taxpayer resists compliance with tax laws, continues to file delinquent tax returns, or makes no or delinquent tax payments;
3) When 10-year collection statute is about to expire.
Under the new Offer In Compromise Program, more taxpayers will qualify for relief, the offers are more affordable, and the IRS will be inundated with offers, which can result in the IRS not rejecting the offer within 24 months, and thus accepting it. The advantages to filing an offer far outweigh the disadvantages, especially where the taxpayer is struggling and the IRS is levying. At Arnold Law Firm, LLC we assist the taxpayer in getting the available relief.
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The IRS Fresh Start Initiatives Program At Arnold Law Firm, LLC we can assist you in dealing with the Internal Revenue Service (IRS) in the Offer In Compromise Program to settle your tax liabilities for less than their face amount. The IRS defines “Offer In Compromise” as an agreement settling the tax liability at less than face amount. The IRS’s policy is to collect the most at the earliest possible time, and at the least cost to the Government. The IRS recently introduced its Fresh Start Initiatives Program, designed to give relief to more taxpayers struggling with past-due tax liabilities, which is designed to qualify more tax payers for relief. We would assist you in filing the offer with the IRS.
