The Frontiers of Society, Science and Technology, 2019, 1(4); doi: 10.25236/FSST.20190330.
Baoji University of Arts and Sciences School of economics and management, Baoji 721000, China
Due to the economic recession including the high unemployment rates and decreasing investment values in the recent decades, some business and individual taxpayer are not able to afford the full amount of the federal tax liabilities when taxes come to due. Taxpayers try to take advantage from any possible strategies to pay as much less tax as they can. One of the common methods is for the business or individual taxpayer to make an offer in compromise (OIC) to pay a reduced amount of the total tax owed to the Internal Revenue Service (the IRS).This research paper covers the development of OIC, factors to be considered before doing OIC, the qualified conditions to do OIC, the verification of taxpayer income source, controversial issue with related law cases, the chance of OIC to be accepted, and the disadvantages of OIC.
Offer in compromise, OIC, taxpayer, Internal Revenue Service, IRS
Jiayue Xie. The Offers in Compromise. The Frontiers of Society, Science and Technology (2019) Vol. 1 Issue 4: 196-205. https://doi.org/10.25236/FSST.20190330.
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