Legal Question in Tax Law in California

Offer of Compromise

It is one of those stories... I own past taxes for 2001,2002,2003. The debt itself is about $45,000, but of course with penalties and interest it is almost twice as much. What is a ''reasonable'' amount for offer of compromise? There is just no way i could pay it off in the full amount.


Asked on 8/15/06, 8:30 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Offer of Compromise

There is no such thing as a "Reasonable Offer" in the eyes of IRS. The offer must be what they think they can collect over the next 5-7 years. An offer in compromise will require that you provide them with a mass of detail, such as bank statements, paycheck stubs, etc. along with all your obligations. Then you have to submit that information, along with a $150 application fee and 20% of the offer (non-refundable) to even have it considered.

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Answered on 8/16/06, 9:44 am


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