The IRS Offer in Compromise can prove a valuable source of tax relief, but it’s not ideal in every situation. This program is inherently difficult for the average taxpayer to understand. Confusion surrounding eligibility standards and application procedures could ultimately lead to rejection. The more you know, the better prepared you’ll feel for the difficulties of the application process. To get started, check out these key resources:
Form 656 Booklet
The official IRS booklet for Form 656 offers a thorough overview of the Offer in Compromise program, complete with definitions, eligibility standards, steps for applying, and even a checklist. Resist the temptation to skip through the information and head straight for the application — even briefly glancing through this booklet will help you better understand the OIC.
Offer in Compromise Pre-Qualifier
Still not sure if you qualify for an OIC? The IRS provides an online pre-qualifier tool that can grant greater insight into your eligibility. By entering basic financial and tax filing information, you can obtain a preliminary amount for your eventual offer. Keep in mind, however, that this is only an estimate — your final offer could be substantially different.
Offer in Compromise FAQs
The IRS directly answers several common questions about the OIC program on its official FAQ page. There, you’ll learn more about liens, low-income certification, and estimated tax payment determinations. The page divides common questions into several categories based on where you currently fall in the process; you’ll learn not only how to apply and what to pay, but also how you can respond if your offer is accepted, returned, or rejected.
Are you thinking of moving forward with the IRS Offer in Compromise? Don’t go it alone; your chances of success are far greater if you have a trusted tax expert on your side. The team at the Highland Tax Group can help; reach out today to learn how.