Are taxes incurred due to illegal schemes eligible for Offer in Compromise?
- October 22, 2013
- David Greene
- Comments Off on Are taxes incurred due to illegal schemes eligible for Offer in Compromise?
The Offer In Compromise program is available to anyone who owes back taxes, no matter how they arose. However, one must qualify financially and otherwise and one’s eligibility cannot be determined until the time to make the Offer. Please be very careful in looking at “tax free” schemes. As I have said before, the IRS is targeting promoters who offer “tax-free” deals. In fact the IRS is now working with most of the states to cooperate in sharing information about individuals engaging in tax avoidance transactions. South Carolina is participating in this initiative. I would tread very carefully. If it looks too good to be true, it usually is. However, if the taxpayer gambles and loses, resulting in a large tax bill, I can help with an Offer in Compromise or other solution.