Should a Lower Income Taxpayer Consult a Low Income Taxpayer Clinic (LITC)?
Like the Taxpayer Advocate Service, LITCs are federally sponsored. Unlike the Taxpayer Advocate Service, LITCs are operated independently by non-government entities including non-profit organizations, law schools, and business schools. Note, however, that LITCs are partially funded by the IRS. Can I Directly Negotiate with the IRS Without Benefit of Representation? An “Offer in Compromise” (OIC) was created by the IRS as a “last resort” option (so described on the IRS Web site), offering the average taxpayer a way to negotiate directly with the IRS. However, the IRS also notes that only “1% of all balance due accounts” are resolved through an OIC. Why the negative statistics? For an OIC to be negotiated, the following conditions must be met: A negotiating taxpayer has the burden of proving reasonable doubt that he or she will ever be in a position to fully pay the debt. A negotiating taxpayer has the burden of proving that the tax balance owed is an incorrect amount.A negotiating taxpa
