Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Offer In Compromise and other Tax Relief topics.
DebtHelp.com Tip: Even though not technically known as an Offer in Compromise, you may have your unpaid tax bill classified as an “uncollectible” account. Arriving at this decision involves the IRS compromising its tax debt with you.
Technically defined, an “uncollectible” tax account is also known as an ‘undue hardship' case. In order to qualify for this classification, you must have very little – if any- assets subject to a tax levy. You also must have no income beyond that needed to cover your living expenses.
Steps involved in obtaining the “uncollectible” tax status are as follows: