Collection agency liquidating accounts
Keep in mind that national percentage averages for Offers are no more relevant than the statistics of the average amount of tax paid by the average Taxpayer.
While some taxpayers may eventually settle their case for the national average, the settlement amount is not based on such averages.
Providing a “Fresh Start” to Taxpayers (one of the stated goals of the 1999 Offer in Compromise procedures) is not an objective viewed with favor by many of the Offer Specialists; hence the Taxpayer’s need for a professional’s help.
For information about advertisements touting Offers in Compromise for "pennies on the dollar," Click IRS has taken the position that the 2006 legislation entitled “Tax Increase Prevention, and Reconciliation Act of 2005” prohibits the IRS from accepting and processing Offers based on both doubts as to collectability and liability.
The current version, Form 656 (revised 3-2011), is to be used for Offers based on doubt as to or effective tax administration.
Another form, Form 656-L (revised 1-2006), is to be used exclusively for offers based on doubt as to liability (i.e. Late in 2011, the IRS made some additional changes to the Offer program.
In 2010, however, only 24% of the Offers submitted were accepted by the IRS (
This decrease in the acceptance of Offers is due, in part, to the more stringent Offer rules adopted by the IRS.
The full IRM is available on the IRS website at gov.