All tax returns must be filed to submit an Offer in Compromise
- April 25, 2017
- David Greene
- Comments Off on All tax returns must be filed to submit an Offer in Compromise
In order to be considered for an Offer in Compromise, the taxpayer must be current with all income tax return filings. If the taxpayer is a company, this requirement includes payroll tax and federal unemployment tax filings as well as the Form 1120 or Form 1065 inccome tax return.Pursuant to a new regulation, for any Offers filed after March 27, 2017, if the taxpayer is not current with all tax filings, his Offer will be denied and the IRS will keep any money sent in with the Offer. He will not have an opportunity to catch up the filings in order to keep the Offer alive. Prior to this regulation, the IRS would usually give the taxpayer 30 days to file any unfixed returns.