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| How can I ensure that the IRS accepts my offer in compromise application? |
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Last Updated
13th of October, 2009
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First, complete Form 656, “Is Your Offer ‘Processable’?” checklist to make sure you qualify. If you do qualify, obtain the following IRS Forms:
• Form 656, Offer in Compromise
• Form 433-A, Collection Information Statement for Wage Earners
- Fill out IRS Form 656, Offer in Compromise, gather all of your supporting documents, and send it to the IRS. The IRS will then process your offer.
- The IRS won’t even consider your offer unless you meet the following conditions: -- You are not a debtor in an open bankruptcy proceeding;
-- You’ve included the $150 application fee. - In addition to the application fee, you need to submit one of the following payments with your offer: -- Lump Sum Offer: This requires 20 percent of the offer, or a signed Form 656-A, Income Certification for Offer in Compromise Application Fee and Payment. -- Periodic Payment Offer: This is the first payment installment, or a signed Form 656-A, Income Certification for Offer in Compromise Application Fee and Payment.
Do the following to best ensure that the IRS will accept your application:
- Include all required documentation.
- Get current with all of your tax filings.
- Complete ALL items on Form 656, Offer in Compromise.
- Include all fees and payments.
- Respond promptly if the IRS requests additional information.
- Complete ALL items on Form 433-A.
Don´t forget to sign your forms or to include fees and payments. Believe it or not, these simple mistakes are the top reasons why the IRS returns offer in compromise applications to taxpayers!
Not sure how you´re going to pay your taxes? Read about what you should do if you can’t afford to pay your taxes. You can also get a free tax consultation to resolve delinquent tax debt today!
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