If taxes (interest and penalties) are owed to Internal Revenue Services, in certain instances, the IRS will reduce the amount owed.
An IRS official recently said, IRS is accepting more "offers in compromise."
An "offer in compromise" is a request to reduce the amount owed when "reasonable cause" is present and the required forms and information are sent to IRS.
You may have seen some TV advertisements that promise big reductions in almost every case. That's not really happening that often.
Some situations, however, do allow IRS to agree to accept less than previous IRS Notices claimed.
In 2010, IRS …