Offer in Compromise Settlement based on Effective Tax Administration is not common. There must be an exceptional circumstance to qualify for this type of Offer in Compromise Settlement.
Offer in Compromise Settlement
The main reason to file for Effective Tax Administration is hardship. You do not qualify for Doubt as to Collectability or Doubt as to Liability Offer in Compromise Settlement. But it would be unfair to hold you responsible for all the taxes due to hardship.
Example: You are elderly and own $100,000 worth of land. All taxes could be paid if the land was sold. But you need the land for retirement. If the land used for taxes, you will have no funds to retire. You may qualify for Offer in Compromise Settlement based on Effective Tax Administration.
Effective Tax Administration is mainly for individuals. Businesses may file for Effective Tax Administration. However, it is rare for the IRS to approve a business for this type of Offer in Compromise Settlement.
Click Here to learn more about Effective Tax Administration Offer in Compromise Settlement.
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.