2. Background
IRS (Internal Revenue service) is a recognized
as a most feared and relentless collection
agency in the US.
IRS was renowned to collect every penny
owed.
It used strong-arm tactics.
3. Change in IRS strategy
‘Offer in Compromise’ program
Settlement offer
Authority to district managers
Government ‘s shift towards business like
practices
4. Merits of the Program
Revenue increased.
Strengthen the image of the IRS.
Made non-tax payers to pay tax easily.
5. Demerits of the Program
More & more offer rejections
Poor collection
7. Questions
1. What is at stake in these negotiations?
2. What are the relative strengths and
weaknesses of the parties?
3. Is ‘Offer in Compromise’ a good idea?Why
or why not?