9:31
some people hate him. some people love him, but he a real one: https://youtu.be/w5oEqiVQcF4?t=173
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
offer in compromise
Read a random definition: Ben Avon Doctrine
A quick definition of offer in compromise:
An offer in compromise is when someone who owes the IRS money offers to pay a smaller amount to settle their debt. The IRS doesn't have to accept the offer, and they only consider it if the person is really struggling financially. The offer has to be based on one of three reasons: the person doesn't think they owe as much as the IRS says, they don't have enough money to pay the full amount, or paying the full amount would be really unfair or cause a lot of problems for them.
A more thorough explanation:
An offer in compromise is a way to settle a tax debt with the IRS for a reduced amount. It is not a guaranteed option and the IRS has the discretion to accept or deny an offer. The IRS considers the potential value of a taxpayer's assets, income, and other factors to determine if an offer is reasonable.
An offer in compromise can be made based on one of the following premises:
- Doubt as to liability: When a taxpayer disputes the amount or existence of the tax debt.
- Doubt as to collectibility: When a taxpayer disputes the ability to pay the tax debt in full due to insufficient assets or income.
- Effective tax administration: When a taxpayer has enough assets to pay the tax debt but believes that full payment would be unfair or create an economic hardship.
For example, if a taxpayer owes $10,000 in taxes but can only afford to pay $5,000, they may submit an offer in compromise to the IRS. The IRS will review the taxpayer's financial situation and determine if the offer is reasonable based on their guidelines. If the offer is accepted, the taxpayer will pay the reduced amount and the remaining debt will be forgiven.