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
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