Offer In Compromise – Retired Debt

Offer In Compromise – Retired Debt

When a taxpayer files an Offer in Compromise with the Internal Revenue Service (IRS), they will evaluate the taxpayer’s ability to pay the taxes owed. As part of this evaluation, the IRS will look at the taxpayer’s income and expenses. For purposes of the Offer in Compromise, it is common practice for the IRS to determine if all claimed expenses are “allowable” and if the expense will be “retiring” in the near future. A debt is retired when it has been paid in full or satisfied by some other means.

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