Important Points to Consider Before Filing for an Offer in Compromise

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An Offer in Compromise (OIC) is not for everyone. Here are some important points to consider before filling for one:


  • To begin the Offer in Compromise process, you must be current with all your tax return filing requirements. If you have not filed your current year's return, the IRS will consider your account up to date if a valid extension was filed. Additionally, you must be current with all required estimated tax payments or have sufficient withholding. If you are an employer, you must have your tax deposits for both the current and past two payroll quarters before filing.
  • An application fee must be paid with the submission of the application, unless you qualify under the provisions available for “low income” taxpayers, generally defined as someone whose income falls below poverty levels. Low income certification is included in the application process.
  • If you have already initiated bankruptcy proceedings you would not be eligible for an Offer in Compromise, although you may be able to settle your tax debt through the bankruptcy court.
  • The statute of limitations on collection is extended by the period it takes for the IRS to consider your offer.
  • OICs are not available for tax years or tax periods that have not been assessed.
  • To apply for an Offer in Compromise you are required to provide extensive and detailed personal and financial information to the IRS by completing a Collection Information Statement.

Our tax professionals are ready to help see if you qualify for an Offer in Compromise or any other type of tax debt relief. Our initial consultation with a tax professional is free. Your tax professional will answer your initial questions and determine if we can help based on your financial situation.

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During your appointment, a licensed tax professional will answer your initial questions and determine if we can help based on your financial situation.


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