However, statistically, the odds of getting a compromise offer from the IRS are quite low. Many people have seen the various national tax agencies on daytime television offering to settle their tax debt for cents on the dollar. However, what doesn't appear in their sales pitch is that nearly 80 percent of the IRS's compromise offers are rejected for a variety of reasons. This isn't all bad, but it does require some strategic planning on the part of the taxpayer.
If everything was sent correctly and your offer is actually being rejected, it's time to take stock of the situation. To submit a commitment offer to the IRS, you must complete Form 433-A (for individuals) or Form 433-B (for businesses). That's another unique situation when an offer is best for your customer and for the IRS (effective tax administration). Rather, there are several types that will likely be offered or discussed with you when completing your application.
Compromise offers can be returned for a variety of reasons, whether procedural, administrative, or administrative. Accounting Today is a leading provider of online business news for the accounting community, offering breaking news, in-depth articles, and a wealth of resources and services. Compromise offers are often difficult to accept, but by using some of these best practices, I hope this will increase your chances of acceptance. The small offer that the IRS accepts will depend on your financial situation, and you will need to disclose it in great detail on Form 433-A (for salaried and self-employed workers) or 433-B (for companies).
First, I've found that the appeals officer generally has more freedom to agree on a compromise offer. A good rule of thumb is that the IRS is likely to approve offers that propose the maximum amount of money they can expect to collect within a reasonable period of time. In addition, since appeals officers have a more mediating role, I have found that discussions on appellate issues are much less contentious than at the supply level. A bankruptcy filing, not including the full application fee, lack of information, accruing additional responsibilities while considering the offer, and many other things can cause your commitment offer to be returned.
First, you should have received a detailed letter from the IRS offering specialist who was assigned your commitment offer from the IRS. First, compare the offers specialist's calculations with your own and see how they differ.