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Offer and Compromise

Certain tax debts cannot be discharged in a bankruptcy proceeding.

• Tax debts incurred within 3 years prior to filing. These are measured from tax day 3 years prior to the date of the filing of a bankruptcy.
• Tax debts for which no return was filed.

If this is your situation, we can help with an established procedure before the IRS known as an Offer and Compromise. An Offer and Compromise can potentially include no payments, but usually involves paying back a percentage.

The standard for determining the amount of the discount centers around two theories:

• Doubts as to collectibility
• Special circumstances.

Doubt as to collectibility means that over the period for collectibility you don't have enough income or assets to pay your tax debt in full. If this can be established you are entitled to relief.

Special circumstances: When you have the income and assets to pay your debts in full during the period of collectibility, you may still be entitled to tax debt relief by establishing that paying the debt in full would cause you some unique or special hardship different from the average individual.

Here at Andersen Law Office we are specialists in submitting offer and compromises and have an outstanding record of success in this field. Our 30 Years experience in bankruptcy before Federal Courts gives us the unique background and expertise to understand the issues in submitting an Offer and Compomise to the Internal Revenue Service.

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