Why US government created the Offer in Compromise Program?
The US government enacted the offer in compromise program to help its revenue collection arm, IRS, to achieve collection of what is potentially collectible taxes at the earliest possible time and at the least cost to the government. The success of the Offer in Compromise program will be assured only if taxpayers make adequate compromise proposals consistent with their ability to pay and the IRS makes quick and reasonable decisions. Taxpayers are expected to provide reasonable documentation to verify their ability to pay. The ultimate goal is a compromise which is in the best interest of both the taxpayer and the IRS. Acceptance of an adequate offer will also result in creating for the taxpayer an expectation of, and a fresh start toward, compliance with all future filing and payment requirements.
