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Taxpayers will not be considered for an offer in Compromise if a tax liability can be paid in a lump sum or through an installment agreement. There is one exception. If a taxpayer requests an Offer in Compromise under the effective tax administration program, they might be considered.
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If a taxpayer qualifies for an installment agreement, can the taxpayer still submit an Offer in Compromise?
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- YOU are solely responsible for all financial and tax information submitted to the IRS on the forms that state ...
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- Yes. In cases where hardship is demonstrated, the installment agreement can sometimes be stopped.
- No. Installment agreement payments must be continued while the offer in compromise is being considered. ...
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