Offers-In-Compromise/Installment Arrangements

Because of the business actions of certain disreputable companies, offers-in-compromise often have a bad reputation. However, in the correct situation, an offer-in-compromise application offers both the taxpayer and the IRS an opportunity to reach a reasonable agreement to reduce the tax principal outside of the bankruptcy process. Given the limited ability to discharge taxes through bankruptcy in many situations, the offer-in-compromise program may be the taxpayer’s only option to reduce an unbearable tax load. The offer-in-compromise program is available at both the federal and Minnesota levels.

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