Can You Get a Second IRS Offer in Compromise If You Had One in the Past?

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Can You Get a Second IRS Offer in Compromise If You Had One in the Past?

Navigating the IRS offer in compromise program is never easy, but it can definitely prove worthwhile. You’ve discovered as much after getting an initial offer accepted. Now, however, you may find yourself in a situation similar to whatever prompted you to seek out an OIC in the first place.

At this point, it’s natural to wonder: is it possible to get a second offer in compromise? The simple answer is a resounding yes — but with some small caveats. Keep reading to gain valuable insight into the realities of seeking multiple OICs.

Why Would You Want Another Offer in Compromise?

In most cases, taxpayers seek additional offers in compromise after their financial circumstances have drastically changed. Thankfully, the IRS will continue to consider new applications, even if you’re still paying on a previous offer.

New applications are also possible if you’ve concluded your payment plan but once again are in need of assistance. Of course, you’ll need to submit thorough evidence of your current financial situation, much like you did when you originally applied.

Is It Worth the Effort to Try for a Second Offer?

As with everything tax-related, the answer is: it depends. Now that you’ve already navigated the application process, however, you may find it less cumbersome to update the IRS on your circumstances. As such, the process will probably feel a lot less intimidating.

As long as you’re still free of the major barriers that instantly lead to rejection (including bankruptcy and the failure to remain current with tax filings), you still have a shot at getting your offer accepted. If your financial issues have worsened considerably and you already succeeded with a previous OIC, it’s almost certainly worth a try.

Whether you’ve succeeded in the past with offers in compromise or are brand new to this process, our team at the Highland Tax Group is happy to lend a helping hand. Contact us today to get started.