IRS Offer in Compromise - Repair Broken Program?

IRS Seeks to Repair Offer Program: "The Internal Revenue Service is trying to fix a program that allows it to compromise with individuals who owe the government more than they can pay.

Critics say many people have to wait much too long for an IRS response to a compromise offer, and that the application process is needlessly burdensome. They also say the IRS rejects far too many offers.

Some of the individuals interested in the program relied on tax shelters that later blew up and are in the process of trying to seek a compromise with the IRS, says Robert E. McKenzie of the law firm Arnstein & Lehr in Chicago. "

IRS Offer in Compromise