Wednesday, April 24, 2013

You are an Open and Operating Corporation: Can you file an Offer in Compromise on Unpaid 941 taxes?

In our 25 plus year history -- we at Washington Tax Services have had changing viewpoints around the IRS Offer in Compromise program as it relates to open corporations who owe the IRS. Previously - we were very skeptical about an open corporation filing an Offer in Compromise on unpaid 941 taxes based on what we saw from the IRS. In fact - very recently - we discouraged companies from doing Offers --almost unequivocally. Well -- based on some new attitudes we have seen from IRS agents in the field:  we are now...doing Offers - albeit limitedly -- for some corporations on their 941 payroll taxes.

Well -- like any Offer in Compromise -- your business will qualify for this procedure if you can clearly demonstrate an inability to pay back the debt!  As written on our other blog:  Offer in Compromise Rule Changes for 2012 the IRS Offer rules changed dramatically in 2012. The IRS has reduced the disposable income required in an Offer from 48 months to 12 months. These rule changes significantly reduced what you are required to pay in Offer -- if you qualify.

While most 941 payroll tax cases are still resolved thru payment plans and penalty abatements and/or dissolution of your entity, the Offer in Compromise program is increasingly being used as an option for companies that owe 941 taxes.

Does your open business owe 941's? Does your closed business?  Do you owe trust fund taxes from a closed business?  We are ready to answer your questions and to see if tax representation will benefit you.  Call us at 1-888-282-4697Marty Griffith, Tax Resolution Expert at Washington Tax Services.


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  4. We worked with the IRS and took home Morgane to pay what they said we owed. Recently we received notice we owed 2005 and 2 quarters of 2006 which we showed were included in the lump sum we paid. They are now asking for three quarters that we show were included and sent copies of letters and just being told to pay, I am list this is o to qp years ago and did not receive anything g prior to a couple months ago and just told to pay and hung up on. At a loss how to handle! Did a) each di#erent person at the time told us to do and thought was resolved!