Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

DID CONGRESS PROVIDE INCENTIVES FOR LOWBALL OFFERS IN COMPROMISE?

May 25, 2006

Kreig Mitchell says they may have done just that:

Another boon for taxpayers is that the new legislation includes a provision that says that offers are deemed accepted if not rejected by the IRS within 24 months after receipt. Personally I have witnessed offers that, had I not continued to follow up with the IRS, that would very clearly not been resolved within two years. I have also submitted offers that were simply lost by the IRS (the IRS records show that the offer was received, but it was never assigned to anyone or otherwise processed). Given this new provision, now taxpayers, who are incentivized to submit low lump sum offers, may well find that their offers are inadvertently accepted. Taxpayers may now attempt to forestall the already inefficient process. This is especially true now that the IRS offer-in-compromise workload is going to increase dramatically.

There's more, and it's all worth reading.

      Bookmark: del.icio.us • Digg • reddit