Offer in Compromise Tips
While an Offer in Compromise (OIC) may be the solution to your IRS Problems, failing to follow a few tips could make the offer unacceptable.
• Make sure you fill out Form 656 (Offer in Compromise) fully and tell the truth. Another form that may be necessary is Form 433-A (Collection Information Statement).
• Don't ask for help from the IRS. Although an IRS officer can assist you with filling out the forms, they work for the government, not you. Do not let him determine the amount of your offer though as they will want you to offer more than you should.
• Be informed. Make sure you read the terms and conditions of the OIC. Even if your offer is not accepted, you will be obligated to certain conditions. Do not sign the form until you are aware of these conditions.
• Submit a deposit. For a Cash Offer a 20% percent down payment is required. For periodic payment Offers, not deposit is required, but you will need to start and keep making the proposed payments. These payments are not refundable should your Offer be rejected.
• Be patient. It may take up to one year for the IRS to review your offer. It will complete a very thorough investigation before accepting your offer.
You do need to file your tax returns on or before the due date or ask for an extension.
• If the IRS asks for more information, get it to them promptly. If there will be a delay in the process, inform the IRS of the reason why.
• Provide all documentation requested. The IRS needs all possible information to help prove your need for an OIC.
• Avoid possible misconceptions of comments. Provide as much as possible in writing and work through the channels necessary to avoid misunderstandings.
• Inform those who could possibly be contacted by the IRS regarding your financial circumstances of that possibility. This will help alleviate any of their suspicions regarding your IRS Problems.
• If your financial situation changes before acceptance of the OIC, you may want to reconsider your offer. This is especially important if your financial situation deteriorates. You may want to either amend your offer or withdraw it altogether.
• Be prepared for hassles. The IRS never makes the process easy.
If you have questions regarding any part of the OIC process, contact us. Our knowledgeable staff can assist you with an OIC or any other IRS Problem you may be experiencing. Call us today.
Related Posts
Filed under Offer in Compromise by 
Leave a Comment