Determining Collectivity of an Account
When determining the collectivity of an account for the purpose of an Offer in Compromise, there are several factors that are considered.
- Inability to locate the taxpayer
- Inability to ascertain the taxpayer’s finances or assets
- Death of the taxpayer with no collection potential from their estate
- Corporations, LLCs, or exempt organizations that were liquidated in bankruptcy or are inactive with no collectible assets or insufficient assets to repay debt
- Taxpayer is deployed in a combat zone
- Payment of debt in full would result in a financial hardship in which the taxpayer would be unable to make necessary living expenses