FC2Video

The government, like other creditors, encounters situations where an account receivable (in their case a tax debt) cannot be collected in full or there is a legitimate dispute as to what is owed. In the business world it is an accepted practice to resolve similar issues through negotiation and compromise, and the same is the case with the IRS. An Offer in Compromise is an agreement between a taxpayer and the government that settles a tax liability for payment of less than the full amount owed.