Offers in Compromise to the IRS  

When a taxpayer owes a tax debt to the IRS, there are a variety of ways that the taxpayer can deal with that liability.  One option that the taxpayer has is to submit an offer in compromise to the IRS.  An offer in compromise asserts that during the statutory period of collection for the taxes at issue (which is ten years from assessment, but is tolled for a variety of reasons) the IRS will not be able to collect the liability from the taxpayer in full.  The taxpayer then offers an amount that he or she will be able to pay, which depends on the income and assets of the taxpayer.

Offers in compromise essentially amount to settlement negotiations between the taxpayer and the IRS, and they are often successful and helpful for both the taxpayer and the IRS.  The taxpayer does not have to pay the full amount owed and can generally determine the terms by which he or she will pay, and the IRS does not have to engage in laborious collection activities to end up only collecting a portion of the taxpayer's liability.

This research guide covers offers in compromise for federal income tax liability, governed by § 7122 of the Internal Revenue Code.  It details the relevant primary sources that underlie offers in compromise, as well as explanatory secondary sources that clarify the statutes and regulations and provide a more practical point of view.  Additionally, this research guide provide links to the forms and instructions necessary for an offer in compromise, and it provides links to associations and interest groups that can provide more assistance with the offer in compromise process.

Bibliographies on this Web site were prepared for educational purposes by law students as part of Nancy P. Johnson's Advanced Legal Research course. The Law Library does not guarantee the accuracy, completeness, or usefulness of any information provided. Thorough legal research requires a researcher to update materials from date of publication; please note the semester and year the bibliography was prepared.

Alison Makins is 2011 J.D. Candidate at Georgia State University College of Law.  Alison's studies in law school focused primarily on federal tax law, and she spent three semesters as a student attorney in the law school's Low-Income Taxpayer Clinic.  In 2011, she won the Paul D. Coverdell Clinic Service Award for her work with clients and her success in defending them against the IRS.  This bibliography was compiled in April 2011 for Advanced Legal Research, a class taught by Professor Nancy P. Johnson.