Can I File an IRS Offer-in-Compromise If My Income Changes?
A business’s income changes all the time, and business owners want to know:
Can they file an Offer-In-Compromise when there is a change in income?
This is our Morning Coffee Series, and we’re going to talk about that.
Can a business file an Offer-In-Compromise if its income changes?
The answer is YES.
In fact, the offer should reflect the changes and fluctuations in the business income.
Any Offer-in-Compromise by a business reflects the business’s ability to pay. If the business has or expects some reduction of income, well, then the ability to pay also changes.
In filing an Offer-in-Compromise, your business’s profit and loss is usually the starting point, and then we consider likely reductions in income.
This argument is most helpful when a business expects a change in income. This method works.
This portion of the offer proves to the IRS that the offer is a good deal for the government to take.
In most cases, an experienced tax lawyer will be the best person to prepare and file an Offer-in-Compromise for a business.
So, we’ve got a lot of questions still yet to cover.
And we do that throughout our Morning Coffee Series.
Stay tuned!