An offer of compromise may be appropriate except
A)When substantial taxes are due
B)When the taxpayer can pay the entire deficiency in a short period of time
C)When there is doubt that the entire amount is collectible
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

An offer of compromise is not necessary when the taxpayer is able to pay the entire deficiency within a short period of time. It is most appropriate when there is doubt that the entire amount is collectible or when substantial taxes are due and the taxpayer is unable to pay them in full. Therefore, options A and C are both situations in which an offer of compromise may be appropriate. Option D is incorrect because not all options listed are inappropriate for an offer of compromise.

An Offer of Compromise May Be Appropriate Except