A Recovery Blog

Remember that certain agreements are for some special cases only. For example offer in compromise or OIC is not for everyone. It’s only for those taxpayers who cannot pay their full debt and also if they have doubts about the liability of tax. Some changes have been made in the original OIC program with effect from July 16, 2006.

The IRS agent is going to ask about your financial position and other questions regarding your yearly income. If you fail to provide sound evidence then they will straight ahead reject your offer and may refuse to listen to any other offers you have to make.

If you are wrong about something, fairly accept it. If you don’t do so you will complicate matters further. If your offer in compromise is pending, then you have to pay all your taxes on time and even after the acceptance of your OIC you have to make all payments within the next five years.

Remember that the representative of IRS you are going to talk to probably does not earn more than $12,000 a year. You don’t need to be intimidated by him. Talk things out fair and square and request an extension of deadline or another interview at some other time after you have ample time to talk to your attorney. And finally, don’t forget that it’s much more important to pay all your taxes in full than having to confront an IRS agent bravely.