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Can an applicant file an Offer-in-Compromise during a bankruptcy or while the underlying assessment is under appeal?

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Can an applicant file an Offer-in-Compromise during a bankruptcy or while the underlying assessment is under appeal?

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No, since a bankruptcy may ultimately reduce or negate the balance owed, we ask that applicants wait until a bankruptcy is finished before filing an Offer-in-Compromise. The same is true for pending petitions for reassessment (appeals of assessments and officer assessments).

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