Offer in Compromise
Step 2: Getting Started
Are you a good candidate?
Before getting started, complete this pre-qualifier worksheet to make sure you have a decent chance of having an accepted offer. This tool is free and does not ask for any personal information. It will also help you understand the information you need to collect before starting your paperwork.
Terms to know
Depending on how much you owe the IRS, how close your taxes are to expiring, or how badly the IRS wants to collect your back taxes, you might be assigned a Revenue Officer. The Revenue Officer is responsible for collecting your back taxes within a timely manner and generally means that you are far along in the IRS Collection Process.
An OIC might not be your best option! Here are a couple scenarios when you should consider a different route:
- You believe there was a mistake on a tax return that caused you to owe taxes Contact us to discuss tax preparation.
- If the IRS prepared a tax return for you (SFR), a better option may be to just fix the inaccurate return. Including legitimate expenses and deductions could help you have a better outcome.
- If your tax debt is expiring, then let it expire! Settling on expiring tax debt means you will still pay a portion of your taxes owed as opposed to letting the entire amount ‘fall-off.’
Personal Information needed for you (and spouse)
Full legal name
Date of birth
Social Security Number
Current home address
Bank account information
Investment information (stocks, bonds, IRA, 401k)
Personal Property information (home, vehicles, cash, motorcycle)
Monthly personal expenses
Credit Card availability and debt
Other debts (mortgage, secured loans, unsecured loans, State tax debt)
Business Information needed (for all businesses)
Employer Identification number (EIN)
Business Asset Information
Business bank account information
Business credit card information
Business Profit and Loss Statement (income and expenses)
If you have a spouse or ex-spouse:
If you plan to settle back taxes for a year that you were married OR you are currently married, you might need to include their financial information on the financial statements and application, too. Your offer amount could ultimately be affected by the additional income, expenses, or assets that your spouse or ex-spouse reports. Although your spouse might not be liable, their information might need to be reported.
If you are submitting an Offer in Compromise independently from an ex-spouse for a tax year which you have a joint tax liability (you were married filing jointly), your ex-spouse could still be held liable for the full tax debt if your offer is accepted.