QUESTION
Can I comprise with the IRS when I already have an installment agreement?
Asked on Jan 16th, 2013 on Taxation - Colorado
More details to this question:
Are installment agreement last for years? Can my wife and I offer in compromise to pay off our tax debt?
7 ANSWERS
Yes, you can make an Offer in Compromise at any time as long as you are current on your filings and payments.
Answered on Jan 24th, 2013 at 11:07 AM
Elder Law Attorney serving Hollister, CA
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Charles R. Perry
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Nothing prohibits you from making an offer to change the terms of your agreement with the IRS. By the same token, nothing requires the IRS to accept your offer.
Answered on Jan 24th, 2013 at 11:07 AM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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You can try. An offer in compromise is different than a payment arrangement.
Answered on Jan 24th, 2013 at 11:06 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would not want to comment without knowing the particulars.
Answered on Jan 18th, 2013 at 11:34 PM
Tax Problem Resolution Attorney serving Lake Oswego, OR
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THE WUHRMAN LAW FIRM
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Yes, you can make an Offer in Compromise even when you already have an installment agreement in place. Just don't stop making the installment agreement payments if at all possible.
Answered on Jan 18th, 2013 at 11:32 PM
Taxation Law Attorney serving Sacramento, CA
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Rex Halverson & Associates, LLP
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Yes but you will have to contact the FTB's Offer in Compromise unit. They will require that you fill out a financial statement before compromising the tax debt. By way of example, if you owe the FTB $20,000 and you are currently paying this debt at a rate of $100 per month, the FTB may accept an OIC of $10,000 cash but the financial statement must reveal where you are getting the $10,000 AND it must show that the FTB is unlikely to be paid the entire $20,000 within the nest 5-7 years. Also note that an OIC will not be granted UNLESS you cannot afford to pay the taxes owed. That is, you are genuinely underwater financially.
Answered on Jan 18th, 2013 at 11:32 PM
Yes, you may chose at any time to file an Offer In Compromise.
Answered on Jan 18th, 2013 at 11:31 PM