IRS Offers in Compromise

A difficult economy can cause good taxpayers to fall behind in their tax obligations, often resulting in a seemingly insurmountable tax debt. Federal and Connecticut tax law provides a mechanism for dealing with these unfortunate situations. In certain situations the Internal Revenue Service will settle a federal tax debt for less than the full amount of that debt. This can happen in the following situations:

  • Where there is some doubt as to the validity of the tax assessed.
  • Where the taxpayer could never pay the full amount of tax claimed by the IRS.
  • Where the taxpayer is not questioning the correctness of the tax calculation or the collectability of the tax, but the taxpayer demonstrates that the actual collection of the tax would represent an economic hardship, would be inequitable or unfair.
Attorney Rubino can evaluate your situation, advise you on whether an offer in compromise is possible, prepare the offer in compromise (IRS form 656 and IRS form 433-A) and negotiate with the IRS to reduce your tax debt and spread it over a monthly payment plan.