IRS Ignore Your Offer in Compromise? What’s Next?

The IRS offer in compromise program provides taxpayers with a remedy for settling back taxes.  It can provide taxpayers with a much-needed fresh start.  Congress has changed the rules for offers.  One change is that offers are deemed accepted if the IRS does not reject them within two years.  This raises the question as to…

Settling Unpaid Taxes With Sporadic or Seasonal Income

Sporadic or seasonal income can make it difficult to settle back taxes with the IRS.  For example, if you have a large one time payment that is not likely to continue, can the IRS consider this in evaluating how much you can pay the IRS?  The court addresses this in Margolis-Sellers v. Commissioner, T.C. Memo.…

Setting Off a Non-Tax Debt Owed by the IRS

If you owe back taxes but the Federal government owes you for some other matter, can the IRS offset the unpaid taxes with the amount the government owes you? The answer is more complex than one would think. The court addresses this in Tartt v. Commissioner, T.C. Memo. 2019-112. Facts & Procedural History The taxpayer…

Eight Things You Need to Know About the IRS Offer in Compromise Program

An offer in compromise is a legal agreement between you and the IRS that settles your tax debt for less than the full amount you owe. It provides you with a path for paying off your tax debt and getting a “fresh start.” If you have unpaid tax debts, here are eight things you need…