The Internal Revenue Service Relaxes Rules for Acceptance of Offers in Compromise

A recent announcement by the IRS Commissioner Doug Shulman states that the Internal Revenue Service will be relaxing the guidelines for the acceptance of Offers in Compromise.

While there are no definitive statements as to how the relaxed rules will work or how they are being relaxed, tax professionals welcome the relaxing of the criteria for acceptance of OIC’s.

Until recently, it was difficult for taxpayers to qualify for Offers in Compromise.  The rules for acceptance were very rigid and had little flexibility.  Now, the relaxing of the rules will make it easier for people to qualify for Offers.

Two things are certain from the announcement:

First, the IRS will accept more evidence regarding  the value of real estate.  This has been an ongoing problem, in that it is no secret to anyone that real estate values have fallen dramatically.

Second, rather than looking at historic earning information to determine ability to pay, the IRS will now consider information about what the taxpayer is currently earning and evidence about what the taxpayer will earn in the future.  This will relax the standards for acceptance of Offers, dramatically.

For more information about Offers in Compromise, please visit our website at:

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About the author:

Martin Martelle is a Tax Attorney, who represents clients throughout the United States with Tax Problems.

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