Final answer:
The IRS accepts offers in compromise based on doubt as to liability, doubt as to collectibility, or effective tax administration, to prevent unfair inconveniences to citizens.
Step-by-step explanation:
The IRS may accept an offer in compromise (OIC) on three grounds. First, if there's doubt as to liability, meaning it's unclear if the tax liability is correct. Second, if there's doubt as to collectibility, indicating the IRS believes it may not be able to collect the full debt. Lastly, an OIC can be accepted based on effective tax administration, which applies when there's no doubt about the liability or collectibility, but requiring full payment could create an economic hardship or would be unfair and inequitable based on exceptional circumstances. These grounds are designed to ensure that the IRS exercises its authority fairly and to avoid using its power to inconvenience citizens unfairly.