Tax Administration: IRS Should Evaluate the Changes to Its Offer in Compromise Program

Abstract

A growing backlog of cases and longer processing times have prompted concern on the part of taxpayers, Congress, and other stakeholders about the management of the Internal Revenue Service's (IRS) Offer in Compromise (OIC) Program. An offer in compromise is an agreement between a taxpayer and the IRS to settle or compromise the taxpayer's tax liability for less than the full amount owed. Generally, IRS considers offers in cases in which taxpayers cannot afford to pay the full tax liability. In recent years, particularly since the enactment of the Internal Revenue Service Restructuring and Reform Act of 1998 (Restructuring Act), the demand for offers has increased significantly. Even though IRS added staff to the program, the inventory of unresolved offers and the processing times have grown. IRS now takes about 10 months, on average, to make an offer determination.

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 2002
Accession Number
ADA400190

Entities

Organizations

  • United States Government Accountability Office

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  • Materials and Manufacturing Processes

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  • Accounting
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Fields of Study

  • Business

Readers

  • Government and Public Administration Law.