Often, when a taxpayer calls the IRS they are advised by IRS employees to file an offer-in-compromise. The taxpayers are given the impression that the IRS will gladly accept whatever they can afford to pay. The IRS sends Letter 278C soliciting the taxpayers to make an offer.
Be Careful with Letter 278C
However, we do not feel Offers in Compromise are appropriate in every case. Because they extend the statue of limitations (for ALL purposes) we only make offers if we feel they will be successful.
Why is the IRS asking you to make an offer?
Many times, more traditional methods of attacking the IRS are more appropriate than an Offer in Compromise. It is important to review all your options and not depend solely on one possible procedure to solve all your tax problems.
The TaxHelpLaw approach is a long-term legal strategy with various tactics at every stage. Not one solution is favored but options are explored throughout the collection time period. Read our series of articles on Offers in Compromise.