What types of offers in compromise are available?
There are three: 1) Offer based on “doubt as to collectibility.” You agree with all of the tax, penalties, and interest the IRS has assessed, but you contend you cannot pay the full amount within the statute of limitations remaining when you submit the offer. This type of offer is by far the most common. 2) Doubt as to liability. You disagree with the amount the IRS has assessed, and offer to pay a lesser amount based on your claim that you owe less. 3) Effective Tax Administration. You agree with the amounts due, and analysis shows it can be fully paid, but your special circumstances merit a reduction. These circumstances mainly include the argument that if you paid in full, you would be left without the means to support yourself. Thus, offers of this type are often based on advanced age, illness, lack of income, inability to borrow against assets Back to FAQ List • Can I pay the offer amount over time? Yes. This question applies to collectibility and effective tax administration offe
