Are You Pre-Qualified for an IRS Offer in Compromise?
Applying for an offer in compromise can be stressful, especially if you have no idea as to whether you’ll qualify. Thankfully, the IRS provides a tool to help you determine whether you’re eligible: the offer in compromise pre-qualifier. Learn what this tool is and how it works below:
What Is the IRS Offer in Compromise Pre-Qualifier?
The easy-to-use pre-qualifier tool is an online system that allows you to enter details about your finances and tax filing status. It should not be confused with the OIC application itself; rather, this resource provides a better sense of your ability to eventually get an offer accepted.
When completing the pre-qualifier, be prepared to provide details about the following:
- Assets. This section might include bank balance, home market value, vehicle equity, or stocks and bonds.
- Income. Specifically, this means highlighting all monthly sources of household income, such as wages, Social Security, unemployment, or child support.
- Expenses. From transportation to health insurance, this section identifies numerous expenses your household might incur during a typical month.
The Shortfalls of the IRS Pre-Qualifier
If there’s a downside to using the IRS pre-qualifier tool, it’s that you can easily get discouraged if this process indicates that you’re ineligible for an offer in compromise. Another limitation? This tool is not applicable to partnerships or corporations currently dealing with tax debt.
If you don’t get the results you want when using the offer in compromise pre-qualifier, remember: a variety of circumstances can lead to an accepted offer — and not all can be accounted for in the simplistic pre-qualifier process.
It’s not necessarily time to give up yet; just be aware that getting your offer accepted might be more difficult than you originally anticipated.
Don’t be discouraged if the IRS offer in compromise pre-qualifier doesn’t turn out as you’d hoped. The team from the Highland Tax Group can help you determine the next steps to get your offer accepted.