Dec 31, 2007

The Offer in Compromise Series- Preface #1

In beginning the series on Offer in Compromises ("OIC"), it is important to note that an "offer" is just what it implies- an offer. The IRS, due to public policy reasons, can reject an offer.

They do this often in some situations:
1. Civil Trust Fund taxes
2. Tax incurred due to fraud or other criminal activity
3. Stay-in-business taxes
4. If the taxes would put a business at a competitive advantage over other competitors in the industry

There are many other "public policy" reasons that may be used. However, this is at the discretion of the IRS and you better have a good fight in you to argue the "public policy" aspects in your favor. This is a long standing IRS position that was publically stated in IRS Policy Statement 5-89.

If you have any questions about OICs and public policy decision, please consult a competent professional.

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