Using the IRS Offer in Compromise Pre-Qualifier Tool: How to Interpret the Results

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Using the IRS Offer in Compromise Pre-Qualifier Tool: How to Interpret the Results

The IRS offer in compromise can be a wonderful solution for putting your debt issues firmly in the past. It can be incredibly difficult to get offers accepted, however, so it’s important to do your research in advance and determine whether you’re truly a candidate for this approach. Typically, this involves the use of the IRS pre-qualifier tool.

Completing the pre-qualifier is the easy part. Now, you need to determine what the results mean and how, based on these answers, you should proceed.

Is the Pre-Qualifier Tool Accurate?

First and foremost: all results from the pre-qualifier should be taken with a grain of salt. This tool is only relevant for cases involving a doubt as to collectability. If you intend to seek an OIC based on a doubt as to liability, the pre-qualifier is all but meaningless.

Additionally, because you don’t need to provide specific details about income sources or assets, the results from the pre-qualifier may not entirely reflect your chances of acceptance. This tool simply helps you ascertain the complications you might face moving forward.

When Are You Automatically Barred from an OIC?

The pre-qualifier is great for determining when an OIC is out of the question. Examples include:

  • Pending bankruptcy
  • Not current with tax filings
  • Not current with estimated payments

 

Next Steps

If the pre-qualifier tool states that you are eligible, you will receive information about proceeding with your OIC application. At this point, completing the full application is advisable. If the tool claims you’re ineligible because the details you entered suggest you are capable of paying in full, all hope is not necessarily lost. At this point, however, you’re strongly encouraged to get help from a trusted resource. This will dramatically increase your likelihood of acceptance.

If you’re committed to OIC success, look no further than the Highland Tax Group. We can help you determine whether you qualify — and help you with your application.