The Offer in Compromise Checklist - 5 Easy Steps to Settle Your IRS Tax Debt With an OIC
It's Brutal: Getting your Offer approved is like winning the lottery.
So be prepared.
Follow this Offer in Compromise Checklist and make sure you can "win" before you start.
1.
Do you have an open bankruptcy? If you have an open bankruptcy, stop now.
The IRS will not approve your offer.
2.
Did you file all Tax Returns before submitting an offer? You have to file all required Tax Returns before submitting an offer.
The IRS will not evaluate your offer until you do.
3.
Are all your Taxes Paid? Tax payments must be up to date for the current year.
If the IRS finds out that your payments are not up to date, they will give you only one chance to make the payments.
If you do not, the IRS will send your offer form back to you.
4.
Did you leave anything out? You have to complete form 656, the official compromise agreement.
Make sure you fill out every single question on the form.
This is a 44-page monster of a form, so it's easy to leave something out.
Double Check Everything! 5.
Reply Promptly to Requests for more information.
Act Fast! The IRS may request more information from you.
When they do, you have to send the information back to them by the deadline.
If you do not, your offer will be denied.
Common Errors To Avoid: -Name missing -Street address missing or incomplete -Social security number or Employer number missing, incomplete, or wrong -Are the preprinted terms and conditions listed on form 656 altered or deleted -Required signature is missing Friendly Warning: Remember, when you first submit your Offer in Compromise you need to include 20% of the offer and/or a $150 dollar application fee.
If your offer is not approved, your money will not be refunded! Amateur Vs.
Pro: The Offer in Compromise is a 44 page document.
It's very easy to make a mistake when you're filling out a form that long.
It's a good idea to hire an experienced Tax Professional when submitting an Offer in Compromise.
A Tax Professional would be less likely to make a mistake.
Plus, they know the lowest possible offer you can qualify for.
Now You Have The Smoking Gun...
Use it!
So be prepared.
Follow this Offer in Compromise Checklist and make sure you can "win" before you start.
1.
Do you have an open bankruptcy? If you have an open bankruptcy, stop now.
The IRS will not approve your offer.
2.
Did you file all Tax Returns before submitting an offer? You have to file all required Tax Returns before submitting an offer.
The IRS will not evaluate your offer until you do.
3.
Are all your Taxes Paid? Tax payments must be up to date for the current year.
If the IRS finds out that your payments are not up to date, they will give you only one chance to make the payments.
If you do not, the IRS will send your offer form back to you.
4.
Did you leave anything out? You have to complete form 656, the official compromise agreement.
Make sure you fill out every single question on the form.
This is a 44-page monster of a form, so it's easy to leave something out.
Double Check Everything! 5.
Reply Promptly to Requests for more information.
Act Fast! The IRS may request more information from you.
When they do, you have to send the information back to them by the deadline.
If you do not, your offer will be denied.
Common Errors To Avoid: -Name missing -Street address missing or incomplete -Social security number or Employer number missing, incomplete, or wrong -Are the preprinted terms and conditions listed on form 656 altered or deleted -Required signature is missing Friendly Warning: Remember, when you first submit your Offer in Compromise you need to include 20% of the offer and/or a $150 dollar application fee.
If your offer is not approved, your money will not be refunded! Amateur Vs.
Pro: The Offer in Compromise is a 44 page document.
It's very easy to make a mistake when you're filling out a form that long.
It's a good idea to hire an experienced Tax Professional when submitting an Offer in Compromise.
A Tax Professional would be less likely to make a mistake.
Plus, they know the lowest possible offer you can qualify for.
Now You Have The Smoking Gun...
Use it!
Source...