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Offer in Compromise For The Oregon Taxpayer

Oregon taxpayers who owe federal tax debt may be able to settle their debt at a fraction of the full liability owed. The Internal Revenue Service has created a variety of tax settlement programs for taxpayers to repay their tax debt and help them meet all of their future federal tax obligations. One of the most popular tax settlement options is Offer in Compromise. Offer in Compromise or OIC allows the Oregon taxpayer to make an “offer” or sum of money they would be able to pay to settle back tax debt. The offer is considered a “compromise” and if it is accepted by the IRS and all of the OIC requirements are fulfilled, the debt will be settled.

The United States government has given the Internal Revenue Service the authority to collect federal tax debt which is used to fund the activities of the federal government. Under this authority, the IRS has the sole discretion to accept or deny offers made under the Offer in Compromise program. The Oregon taxpayer will not have any legal recourse against the IRS if they do not accept their OIC offer.

Interest and penalties will continue to accrue while the Internal Revenue Service is considering a taxpayer’s Offer in Compromise offer. If the IRS does not accept the offer, the Internal Revenue Service can begin their aggressive collection efforts with the detailed information which the taxpayer has provided to them. Approximately 25% of the OIC offers are accepted by the IRS at the initial application level. More may be accepted on appeal. Offer in Compromise can be expensive and time consuming.

Oregon taxpayers who have federal back tax debt and who are considering Offer in Compromise should contact a tax professional. Offer in Compromise is only one of several tax settlement options available and will not be the best option for all Oregon taxpayers.

Qualifying for Offer in Compromise in Oregon

Oregon taxpayers who are considering Offer in Compromise must meet one of the following conditions:

  1. Doubt as to Liability– If an Oregon taxpayer has doubts the amount of federal tax debt which has been assessed against them and the Internal Revenue Service agrees the amount is questionable, the IRS may be willing to accept an Offer in Compromise.
  2. Doubt as to Collectibility– The Internal Revenue Service may conclude that certain tax debt will not be collectible or the cost to collect will be too high. If the Internal Revenue Service makes this determination an Offer in Compromise may be accepted. Under this condition, the amount of tax debt is not in question, only the ability of the Internal Revenue Service to collect the federal tax debt.
  3. Effective Tax Administration– Certain Oregon taxpayers will not be able to pay their federal tax debt with out suffering “an economic hardship which is inequitable and unfair”. If the IRS makes this determination, an Offer in Compromise may be granted. This option is used most often for the handicapped and the disabled.

Rejection of Offer in Compromise in Oregon

Unfortunately, the approval rate for Offer in Compromise is approximately 25%. A higher percentage may be accepted on appeal. If the IRS denies the taxpayer’s Offer in Compromise they are required to send written notification for the reason for the denial and the amount they would consider acceptable. The IRS most commonly denies OIC offer because they believe the offer is too low. If the Internal Revenue Service has denied an Oregon taxpayer the right to review the Offer in Compromise information, the taxpayer has the legal authority to request the information under the Freedom of Information Act.

Offer in Compromise appeals must be made with in thirty days of the date of the denial. Tax professionals can assist with all first time Offer in Compromise offers as well as the OIC appeal’s process. New OIC forms will only need to be filed if the deadline has expired or an Oregon taxpayer’s financial situation has dramatically changed.

Appealing an Offer in Compromise in Oregon

Offer in Compromise appeals can be made informally with the IRS administrator who made the first denial decision. This administrator may or may not be willing to negotiate. If negotiation attempts fail with the administrator, a more formal approach is available by sending a letter to the IRS with in 30 days of the OIC denial. The Internal Revenue Service is often willing to negotiate a settlement to help the taxpayer settle the debt and encourage the taxpayer to pay future tax liability.

Oregon taxpayers must meet the following requirements to qualify for Offer in Compromise:

  • Oregon taxpayers will need to provide to the Internal Revenue service all requested financial documentation
  • Oregon taxpayers will need to complete all the OIC forms and submit them to the IRS
  • All federal tax returns must be filed
  • Oregon resident’s who are self-employed must make all of their estimated tax payments each quarter
  • All taxes must be paid except for back tax payments outlined in the OIC offer

To qualify for an Offer in Compromise an Oregon taxpayer must submit the following forms:

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides detailed financial information to the Internal Revenue Service and documents the ability of the taxpayer to repay their debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. The form provides additional financial information to the Internal Revenue Service.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Internal Revenue Service uses Form 433-B to provide information to the Internal Revenue Service about a taxpayer’s business. Tax Form 433-B is only required if the taxpayer is including their business tax debt in the Offer in Compromise offer.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. If an Oregon taxpayer is requesting the OIC fee be waived, they must complete IRS Form 656-A.

Oregon Tax Professionals

The Internal Revenue Service provides a variety of tax settlement options. Tax professionals have the experience necessary to review a taxpayer’s financial data and determine which tax settlement program may be best. Tax professionals can also help with submitting an Offer in Compromise and with all negotiations in the OIC appeal’s process.

Submitting An Offer in Compromise To The IRS In Virginia

The IRS has a variety of IRS tax settlement options which are available to Virginia taxpayers and Offer in Compromise or OIC is one of the most popular. Virginia taxpayers can make the IRS an offer, which the IRS can choose to accept or deny. If the offer is accepted, all tax debt outlined in the OIC will be considered settled. Offer in Compromise is an IRS tax settlement option which may allow the Virginia taxpayer to settle their IRS tax debt for a fraction of the full amount owed.

Up to 20% of Offer in Compromise offers are denied at the initial application level. The IRS will only accept an Offer in Compromise if they believe the Virginia taxpayer will not be able to repay their tax debt with an installment agreement or with a lump sum payment. If the OIC is denied, the Virginia taxpayer may be able to negotiate or file an OIC appeal.

Virginia taxpayers who do not pay their federal tax debt may face IRS collection actions such as wage garnishments, business or personal property repossession or bank account levies. Virginia taxpayers who are interested in stopping the IRS or who want to settle their IRS tax debt should contact a tax professional for help. Offer in Compromise can be costly, time consuming and difficult to implement. It can be a good method to repay tax debt at a fraction of the full amount owed, but it may not be the best option for all Virginia taxpayers.

Three types of Offer in Compromises:

Not all taxpayers who want an Offer in Compromise will qualify for one. Virginia taxpayers must meet one of the following OIC conditions to qualify for an OIC:

1. Doubt as to Liability – The IRS may accept an OIC if there is doubt as to the accuracy of IRS tax debt which has been assessed against the taxpayer. Errors are rare, but could occur if the IRS miscalculates tax debt, misinterprets tax law or if the taxpayer provides tax documentation which has not previously been reviewed.

2. Doubt as to Collectibility –  If the IRS does not believe they will be able to collect tax debt before the statutory period for debt collection ends, they may accept an Offer in Compromise. The IRS may also accept an OIC if they determine the cost to collect the tax is too high.

3. Effective Tax Administration- If a Virginia taxpayer may suffer a hardship which is unfair or inequitable they may qualify for an Offer in Compromise. The elderly and the handicapped most frequently use this condition.

Rejection of Offer in Compromise in Virginia

The IRS has been tasked by the federal government to collect federal taxes. The IRS also has the authority to determine how much the federal government is willing to accept to settle tax debt. The IRS has sole discretion to accept or deny an Offer in Compromise offer and if the offer is denied, the taxpayer can appeal the decision. If the OIC appeals are exhausted, the Virginia taxpayer will not be able to sue the IRS.

If the Offer in Compromise is denied, the Virginia taxpayer will receive written notice from the IRS which will document the reason the OIC was not accepted. Most Offer in Compromise offers will be denied because the IRS believes the offer is too low. The IRS may be willing to provide the Virginia taxpayer with a counter offer or negotiate to find an agreeable offer. If the IRS refuses to send Offer in Compromise information to the Virginia taxpayer, this information can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Virginia

The first step in the OIC appeal’s process is to contact the IRS administrator who reviewed the Offer in Compromise. The IRS may be willing to negotiate to find a settlement amount which will be agreeable to both the government and the Virginia taxpayer. The IRS may be willing to negotiate if they believe the compromise payment will help the Virginia taxpayer meet their future tax obligations. If the IRS refuses to negotiate, the Virginia taxpayer can file a formal appeal by writing a letter to the IRS. The taxpayer has thirty days from the date of the Offer in Compromise letter to file their appeal.

The Virginia taxpayer should include the following information on their OIC letter:

  • Virginia taxpayer’s full name, address, social security number and telephone number.
  • A copy of the statement from the Virginia taxpayer documenting the reasons they are appealing the OIC denial.
  • All proposed changes the Virginia taxpayer wants changed.
  • Information about the tax periods or years in question.
  • An outline of the federal tax laws which support the Virginia taxpayer’s position.
  • The OIC appeal letter must be signed by the Virginia taxpayer under penalty of perjury.

Tax professionals such as certified public accountants, enrolled agents or tax attorneys can be hired to provide legal assistance for Offer in Compromise negotiations or appeals.

Completing an Offer in Compromise

The following tasks should be completed by Virginia taxpayers:

  • Virginia taxpayers must send Offer in Compromise forms to the IRS by the taxpayer.
  • Virginia taxpayers must send the IRS information they request. Information may include employment and vehicle information.
  • Virginia taxpayers must file federal tax returns and submit them to the IRS before the federal tax deadline for the next 5 years.
  • All self-employed Virginia taxpayers must file and mail their tax returns and estimated tax payments to the IRS each quarter.
  • All federal taxes must be paid by Virginia taxpayers for the next five years.
  • All OIC requirements must be met.
  • Federal tax refunds will be applied to the Virginia taxpayer’s tax debt for the calendar year that the OIC is accepted.

The IRS has the authority to cancel the Offer in Compromise agreement and reinstate all IRS tax debt if Virginia taxpayers fail to meet all of the OIC requirements.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Virginia taxpayers must send Form 656 to the IRS to provide them with information about the taxpayer’s ability to pay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Virginia taxpayers must send Form 443-A to the IRS to provide additional information about the taxpayer’s ability to repay their IRS taxes.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Virginia taxpayers must send Form 433-B to the IRS only if the Virginia taxpayer is including their business debt in their Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Virginia taxpayers must send Form 565-A to the IRS only if they are requesting an Offer in Compromise fee waiver.

Offer in Compromise for Alabama Taxpayers

Offer in Compromise (OIC) is an agreement between the taxpayer and the Internal Revenue Service to negotiate and pay a tax liability for less than the total amount owed. The Internal Revenue Service will agree to an Offer in Compromise if a taxpayer meets certain criteria and is not in a position to pay their federal tax debt in full. The Internal Revenue Service will only agree to an Offer in Compromise when it considers the offer to be in the best interest of the federal government and the taxpayer.

Alabama taxpayers who have federal tax debt and are unable to pay, may want to contact a tax professional  such as a tax attorney or tax accountant to discuss all available tax settlement options. Failure to pay federal tax debt can result in heavy fines and penalties, bank account levies, repossession of personal property and wage garnishments. Do not wait to call for help. Tax professionals in Alabama are familiar with the debt collection tactics of the IRS and can help provide relief.

Offer in Compromise in Alabama

Alabama taxpayers may be able to pay a small percentage of their total Internal Revenue Service debt they owe through Offer in Compromise. Offer in Compromise is offered in Alabama and in all other states. The goal of Offer in Compromise is to help Alabama taxpayers meet their current tax debt obligations so they will be able to pay their future tax liability.

Approximately 20% of the OIC applications are approved in the initial review process. Hiring a tax professional who is more familiar with the submission process and the Offer in Compromise forms may help increase your chances.

Qualifying for Offer in Compromise in Alabama

  • Doubt as to Liability – Alabama residents who doubt the amount of their outstanding tax debt may be able to prove Doubt as to Liability. Taxpayers must submit an explanation to the IRS outlining why they doubt the liability amount. Taxpayers may want to discuss other less costly and difficult ways to review their tax debt liability with a tax professional with out filing for Offer in Compromise.
  • Doubt as to Collectibility- The Internal Revenue Service must believe there is a doubt that the tax debt will ever be collected. Under this condition, there is not a doubt as to the amount of tax liability only the ability to collect.
  • Effective Tax Administration- The Alabama resident is not disputing the amount of tax debt owed, only that collection of the federal tax liability would “create an economic hardship which is inequitable and unfair”. This is mainly used for the disabled and elderly.

Additionally Alabama residents must meet the following criteria:

  • Individuals can not have an open bankruptcy claim
  • All federal tax returns must be filed
  • Offer in Compromise fee of $150 must be paid or waived
  • All appropriate forms including forms 656, 433-A or/and form 433-B and all requested financial information must be submitted
  • Taxpayer must be current with income taxes for the current year or if self-employed they must be current with the estimated taxes due

Rejection of Offer in Compromise Offers in Alabama

The Internal Revenue Service is required to send the Alabama taxpayer written notification of the OIC denial and the reason the offer was denied. The most common reason most Offer in Compromise applications are denied is the IRS believes the offer is too low. In the denial letter, the Internal Revenue Service must indicate the amount they have determined to be reasonable. Alabama taxpayers have the right to access all information regarding their OIC under the Freedom Information Act.

If the Offer in Compromise application has been denied, a tax professional can help you appeal the decision. A new form 656 will not need re-submitted unless there has been a substantial change in your financial situation or you fail to make your new offer with in 30 days from the date of the denial.

Appealing an Offer in Compromise in Alabama

The OIC administrator who denied your first Offer in Compromise application may be the best place to start for negotiations. Failure to get a more favorable decision may require you to file a more formal appeal. A letter must be sent to the IRS with in 30 days of the denial letter to make a formal appeal. Tax professionals have the necessary experience to negotiate appeals. The IRS has the ability to refuse your Offer in Compromise and they can not be sued by Alabama taxpayers for failure to accept offers. To increase the chances that your Offer in Compromise application will be accepted, you must complete the following tasks:

  • Federal tax returns must be filed
  • Accurate and detailed financial records which are request by the IRS must be submitted
  • Self-employed individuals must make estimated quarterly tax payments
  • Federal tax debt for the previous years must be paid

Alabama Tax Professionals

Alabama taxpayers who are considering Offer in Compromise may want to contact a tax professional for help. Tax professionals who are familiar with the Offer in Compromise process will include enrolled tax agents, tax attorneys and tax accountants. If you are not able to file an Offer in Compromise, there may be other tax settlement options available. It is important to take immediate action if you have a federal tax liability and not wait for the Internal Revenue Service to find you.

Benefits of Offer in Compromise

  1. Temporarily stops debt collection efforts by the IRS
  2. Allows the Alabama taxpayer to potentially pay less than their original tax debt
  3. Can stop tax liens against property after the OIC is complete
  4. May allow the Alabama taxpayer to avoid filing personal bankruptcy
  5. Alabama residents may be able to eliminate the worry and fear associated with having a large tax liability and dealing with the IRS tax collectors.

Offer in Compromise For Idaho Taxpayers

The IRS offers a variety of tax settlement options for Idaho taxpayers who are unable to pay IRS tax debt and Offer in Compromise is one of the most popular options.  Offer in Compromise or OIC allows an Idaho taxpayer to make an offer to the IRS to settle past IRS debt. If the IRS considers the offer reasonable, they will accept the offer and the past tax debt will be considered settled. The IRS has the incentive to accept Offer in Compromise offers because it will eliminate the need for a protracted installment agreement, can help them avoid declaring debt as currently not collectible and help taxpayers pay their future tax liability.

The IRS does not accept all Offer in Compromises. The IRS will only accept an offer if they believe the debt is not collectible, the debt may cause a taxpayer unreasonable hardship or the amount of debt is potentially miscalculated.

The Internal Revenue Service is the government entity tasked with tax collection. The IRS is authorized to collect the tax dept by the federal government. Idaho taxpayers who fail to pay their tax debt can face aggressive debt collection tactics by the IRS including: wage garnishment, repossessions, and bank account levies. Offer in Compromise may be one method taxpayers have to avoid debt collection actions.

Offer in Compromise can be expensive and time consuming. The IRS will need large amounts of detailed financial data from the taxpayer to process the OIC. Penalties and interest will continue to accrue while the OIC offer is under consideration. A tax professional should be contacted by the Idaho taxpayer if they are considering an Offer in Compromise.

Qualifying for Offer in Compromise in Idaho

Approximately 25% of initial OIC offers are accepted. Not all Idaho taxpayers who want an OIC will qualify. To qualify for an OIC the Idaho taxpayer must meet one of the following conditions:

Doubt as to Liability – The IRS must believe there could be a miscalculation in the amount of debt the taxpayer owes. This can occur if the IRS made a mistake in assessing the tax liability or the taxpayer has more financial documentation that can clarify the amount of debt owed. The IRS does not use this condition very often.

Doubt as to Collectibility –  The IRS believes they will not be able to collect the tax debt either now or in the future. Under this condition the amount of tax debt owed is not in question, only the ability of the IRS to collect the debt.

Effective Tax Administration– If payment of the tax debt may cause “an inequitable or unfair hardship for the taxpayer” the Internal Revenue Service may be willing to accept an Offer in Compromise (most frequently used by the elderly and the disabled).

Rejection of Offer in Compromise in Idaho

Most Offer in Compromises are denied. The IRS has been granted the authority to deny or accept offers by the federal government and the Idaho taxpayer does not have legal recourse against the IRS. The IRS however, does frequently negotiate to give the taxpayer the ability to meet future tax obligations.

If the IRS denies the OIC, they must send written notification to the Idaho taxpayer outlining the reason for the rejection. If the IRS denied the Offer in Compromise because the offer was too low they should be able to provide a counter offer to the taxpayer which they would consider reasonable. If the IRS refuses to provide information the Idaho taxpayer has the legal authority to request it under the Freedom of Information Act.

Appealing an Offer in Compromise in Idaho

Negotiations for the Offer in Compromise can often start by contacting the IRS administrator who made the first OIC decision. If that does not work, a more formal appeal can be made by sending written notice to the IRS within 30 days from the date of the OIC denial.

Idaho taxpayers will need to resubmit their OIC forms only if the OIC deadline has expired or if their financial situation has dramatically changed.

Completing an Offer in Compromise

Idaho taxpayers will also need to complete the following tasks for an Offer in Compromise:

  • All Offer in Compromise forms must be completed and sent to the IRS.
  • Idaho taxpayers must submit their financial data to the IRS in a timely fashion. Financial information may include: Idaho taxpayer’s pay stubs, banking and car information.
  • Idaho taxpayers must complete and file tax returns on or before the tax deadline for the next five years.
  • All self-employed Idaho taxpayers must pay their tax estimates and file their tax returns every quarter.
  • All tax payments (except the amount outlined in the OIC) must be paid by Idaho taxpayers for the next five years.
  • Idaho taxpayers must pay the amount outlined in the Offer in Compromise.
  • All refunds will be applied to the Idaho taxpayer’s tax debt before the Offer in Compromise is accepted.
  • The Internal Revenue Service will apply any federal refund to the Idaho taxpayer’s tax debt for the calendar year that the Offer in Compromise is approved.

The IRS can reinstate the full tax amount and cancel the Offer in Compromise if taxpayers fail to follow all the OIC requirements.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides financial information to the Internal Revenue Service detailing the taxpayer’s ability to pay their tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional information to the Internal Revenue Service about the ability of the Idaho taxpayer to pay their debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the IRS about the Idaho taxpayer’s business. This form will only need to be submitted if the business tax debt is included in the OIC agreement.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. This form must be submitted if the Idaho taxpayer is requesting an Offer in Compromise fee waiver.

Offer in Compromise in Connecticut

The Internal Revenue Service has the authority from the federal government to collect taxes to fund government activity. Connecticut residents who owe federal tax liability may be able to negotiate with the Internal Revenue Service to settle their federal tax debt for less than the full amount owed.

The Internal Revenue Service offers a variety of debt settlement options for Connecticut taxpayers including Offer In Compromise. Offer In Compromise allows the taxpayer to make an “offer” to the Internal Revenue Service to settle tax debt. Penalties and interest continue to accrue until the offer is accepted and the IRS has sole discretion to decide if they are willing to accept the Offer in Compromise. If the Internal Revenue Service does not accept the offer, they will have detailed financial information which they can use to continue their collection efforts.

Connecticut taxpayers who are considering Offer in Compromise, may want to discuss their financial situation with a tax professional such as a tax accountant, tax attorney or enrolled agent to decide if Offer in Compromise is the best tax settlement option available.

Qualifying for Offer in Compromise in Connecticut

All Connecticut residents Offer in Compromise (OIC) applications will not be accepted. In fact, the IRS accepts approximately 20-25% of the first time offers. More are accepted on appeal. Offer in Compromise can be time consuming and expensive. Offer in Compromise offers will only be accepted if they meet one of the following criteria:

  1. Doubt as to Liability–  Connecticut residents may qualify for Offer in Compromise if there is doubt about the amount of IRS tax debt they owe. This condition is not commonly met.
  2. Doubt as to Collectibility–  Certain Connecticut residents will have outstanding tax debt which is not in question, but the Internal Revenue Service will decide they can not collect the debt or collection of the debt would cost more than settling with an Offer in Compromise.
  3. Effective Tax Administration– If the Internal Revenue Service believes collection of the tax debt will cause “an economic hardship which is inequitable and unfair” they may decide to accept the Offer in Compromise. This is most commonly used for the elderly and disabled.

Rejection of Offer in Compromise in Connecticut

It is not unusual for an Offer in Compromise to be rejected. If the Offer in Compromise is rejected the Internal Revenue Service is obligated to send the taxpayer written notification explaining the reason for the denial and suggest an offer they would consider reasonable. The Internal Revenue Service frequently denies Offer in Compromise offers because they believe the offers are too low. Connecticut taxpayers are allowed to request all OIC information and will have legal access to the information under the Freedom of Information Act.

Tax Professionals can help submit all Offer in Compromise applications and negotiate with the Internal Revenue Service if the offer is denied. All OIC appeals must be made with in thirty days from the date of the denial. New Offer in Compromise forms will only need to be completed if the Connecticut taxpayer’s financial information has drastically changed or if the deadline to appeal the Offer in Compromise has expired.

Appealing an Offer in Compromise in Connecticut

Connecticut taxpayers whose Offer in Compromise application has been denied may be able to re-negotiate the offer with the administrator who made the first decision. If negotiations fail, a more formal OIC appeal process is available. The Internal Revenue Service frequently will engage in negotiations to settle tax debt with the goal of helping the tax payer pay federal liability now and put them in a position to pay all future tax obligations.

Connecticut taxpayers who would like to appeal their Offer in Compromise denial, must make a written appeal to the Internal Revenue Service.  To reduce the chance of a denial all the following tasks must be completed and the following information provided:

  1. The Internal Revenue Service will need detailed information about the Connecticut taxpayer’s finances.
  2. Connecticut taxpayers will need to file all past tax returns.
  3. Self-employed workers must file and make estimated tax payments each quarter.
  4. Connecticut taxpayers will need to pay all the tax liability they owe that is not covered under the Offer in Compromise agreement.

The Internal Revenue Service does not have to agree to the OIC appeal. They have sole discretion to accept or deny all OIC applications and Connecticut taxpayers do not have the legal ability to sue the Internal Revenue Service if the Offer in Compromise appeal is denied.

There are a variety of forms that Connecticut taxpayers will have to complete to make the Offer in Compromise:

  1. IRS Form 656- Offer in Compromise. Form 656 provides information about the amount of funds Connecticut taxpayers can offer to settle their Internal Revenue Service tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Connecticut taxpayers will provide information about their current financial statues on this form and the Internal Revenue Service can use the information to determine the taxpayer’s ability to repay their tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Internal Revenue Service uses Form 433-B to collect information about the taxpayer’s business. Tax Form 433-B is required if a Connecticut taxpayer is including their business in their Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Connecticut taxpayers can use Form 656-A if they are requesting the Internal Revenue Service to waive the OIC fee.

Connecticut Tax Professionals

The Internal Revenue Service offers a wide variety of tax settlement options for the Connecticut taxpayer. If you live in Connecticut and you are considering an Offer in Compromise, a tax professional can help. Tax professionals can provide the knowledge and expertise needed to you determine if Offer in Compromise is right for you.

Offer in Compromise For Pennsylvania Taxpayers

Offer in Compromise or OIC is a popular IRS tax settlement option which Pennsylvania taxpayers can use to settle outstanding IRS tax debt. OIC allows taxpayers to propose a tax settlement amount to the IRS to settle federal tax debt. In some cases, the amount offered and accepted by the IRS may be a fraction of the full amount owed. If the IRS chooses to accept the Offer in Compromise, the Pennsylvania taxpayer’s debt will be settled.

Not all OIC offers will be accepted. Currently the IRS accepts approximately 20% of first time offers, but the IRS may be willing to negotiate with the taxpayer. If the IRS will not negotiate, the taxpayer may be able to file a formal Offer in Compromise appeal.

Pennsylvania taxpayers who fail to pay federal taxes can become the target of aggressive IRS collection actions. The IRS has been authorized by the federal government to use wage garnishments, repossession and bank account levies to recover taxes. All Pennsylvania taxpayers who have IRS tax debt should consult with a tax professional who can provide information for all of the IRS tax settlement options. Offer in Compromise can be used to settle IRS tax debt, but it can be expensive, time consuming and difficult to implement. It will not be the best IRS tax settlement option for all Pennsylvania taxpayers.

Three types of Offer in Compromises:

Many taxpayers who request an Offer in Compromise will not qualify for one. To qualify for an OIC, taxpayers must meet one of the following conditions:

1. Doubt as to Liability – The IRS may accept an Offer in Compromise if the tax debt is in question. Though infrequent, errors can occur due to a miscalculation, misapplication of tax law or if the taxpayer provides additional tax information which has not previously been considered.

2. Doubt as to Collectibility –  Under this condition the amount of tax debt is not in question only the ability of the IRS to collect the tax doubt now or in the future. The IRS also may accept the Offer in Compromise if collection costs are too high.

3. Effective Tax Administration- If the IRS believes that payment of the federal tax could cause a hardship which is inequitable or unfair the IRS may be willing to accept an Offer in Compromise. This condition is met most frequently by the elderly or the handicapped.

Rejection of Offer in Compromise in Pennsylvania

The IRS has the authority not only to collect taxes but also to accept or deny Offer in Compromise offers. The IRS denies most OIC offers because they believe the taxpayer’s offer is too low. Pennsylvania taxpayers who have exhausted their OIC appeals will not have any legal recourse against the IRS.

Written notification will be sent to the taxpayer after the IRS denies the Offer in Compromise. The notice will document the reasons the Offer in Compromise was denied and if the IRS believes the offer was too low, they should be able to provide a counter offer. All information which is not provided to the Pennsylvania taxpayer for the Offer in Compromise can be obtained under the Freedom of Information Act.

Appealing an Offer in Compromise in Pennsylvania

If the OIC was denied, Pennsylvania taxpayers can contact the IRS administrator who reviewed their Offer in Compromise to find out if the IRS is willing to negotiate a settlement amount. It is not unusual for the IRS to work with the taxpayer to find a settlement offer which is agreeable to both parties. If the IRS is unwilling to negotiate, a formal appeal can be made by writing a letter to the IRS within 30 days from the date of the OIC denial letter.

The OIC letter should contain the following information:

  • The name, address, social security number and telephone number of the Pennsylvania taxpayer.
  • A copy of the statement from the Pennsylvania taxpayer outlining the reasons they are appealing the Offer in Compromise denial.
  • All proposed changes that the Pennsylvania taxpayer wants updated.
  • Information about the tax periods or years in question.
  • Information about the federal tax laws which support the Pennsylvania taxpayer’s position.
  • The Offer in Compromise appeal letter must be signed by the Pennsylvania taxpayer under penalty of perjury.

Legally Pennsylvania taxpayers can represent themselves for all of the OIC appeals and negotiations, but Pennsylvania taxpayers who prefer to hire legal counsel should contact a tax professional (tax attorney, certified public accountant or an enrolled agent).

Completing an Offer in Compromise

Pennsylvania taxpayers must also complete the following tasks:

  • Offer in Compromise forms must be sent to the IRS by the taxpayer.
  • Pennsylvania taxpayers must send the IRS all of the information they request which could include employment and vehicle information.
  • Federal tax returns must be filled out and submitted to the IRS for the next five years before the federal tax deadline.
  • All self-employed Pennsylvania taxpayers must file and submit tax returns each quarter and pay their estimated federal taxes.
  • All federal taxes must be paid by Pennsylvania taxpayers for the next 5 years.
  • All Offer in Compromise requirements must be met.
  • Tax refunds from the IRS will be applied to the Pennsylvania taxpayer’s tax debt for the calendar year that the Offer in Compromise is accepted.

Failure to meet all Offer in Compromise requirements can give the IRS the authority to cancel the OIC agreement and reinstate all IRS tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Form 656 must be sent by the Pennsylvania taxpayer to the IRS. This form documents the taxpayer’s ability to pay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A must be sent by the Pennsylvania taxpayer to the IRS to provide additional information about the taxpayer’s ability to repay their IRS taxes.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B must be sent by the Pennsylvania taxpayer to the IRS only if the taxpayer is including their business debt in their Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Form 565-A must be submitted by the Pennsylvania taxpayer only if they are requesting an Offer in Compromise fee waiver.

Georgia Offer in Compromise

Georgia taxpayers who owe federal back taxes have several IRS tax settlement options available to settle the debt. One of the most common programs is Offer in Compromise or OIC. Offer in Compromise allows the taxpayer to make an “offer” for less than the full amount of tax debt owed and the Internal Revenue Service (IRS) will either choose to accept or reject the offer. If the IRS decides to accept the offer, it is considered a “compromise” and will completely settle the IRS tax debt. The IRS has an incentive to accept OIC offers because it allows them to avoid declaring a tax debt as not collectible or extend the payment period with a protracted installment agreement.

The federal government has given the Internal Revenue Service the authority to collect tax debt from United States taxpayers. With this authority, the IRS also has sole discretion to accept or decline Offer in Compromise offers.  The IRS frequently will settle IRS tax debt if they believe the debt is unlikely to be collected, there is question to the amount of tax debt owed or if paying the taxes will cause a Georgia taxpayer extreme financial difficulty. Currently the Internal Revenue Service accepts approximately 25% of the initial Offer in Compromise offers. Unfortunately, if the IRS declines the OIC offer, the Georgia taxpayer will have no legal recourse against the IRS and the IRS can continue their aggressive debt collection efforts with the detailed information the Georgia taxpayer has provided.

All Georgia residents who are considering an Offer in Compromise should contact a tax professional for assistance. Offer in Compromise can be a complicated, time consuming and expensive tax settlement option. Penalties and interest will continue to accrue until the offer is accepted. There are several IRS tax settlement options available to eliminate tax debt and Offer in Compromise may not be the best option for all Georgia taxpayers.

Qualifying for Offer in Compromise in Georgia

For a Georgia taxpayer to qualify for Offer in Compromise, they must meet one of the following conditions:

Doubt as to Liability – The Internal Revenue Service must agree that there is some doubt as to the amount of IRS tax debt which has been assessed to the Georgia taxpayer. This condition is not often met.

Doubt as to Collectibility – The Internal Revenue Service must agree that it is unlikely that the assessed taxed liability will be collected now or in the future or the IRS considers the cost to collect the tax debt too high.

Effective Tax Administration–  Under certain conditions, collection of the IRS tax debt will cause a Georgia taxpayer an economic hardship which would be inequitable or unfair. If the IRS agrees, they will accept an Offer in Compromise. This condition is most frequently accepted for the elderly and handicapped.

Rejection of Offer in Compromise in Georgia

Up to 80% of Offer in Compromise offers will be declined. More will be accepted after a series of negotiations or a formal appeal. If the IRS rejects a Georgia taxpayer’s offer they are required to send written notification outlining the reason for the denial and what amount they would consider reasonable to settle the debt. New OIC forms will only have to be resubmitted if the OIC deadline has passed or if the taxpayer’s financial information has significantly changed. All Offer in Compromise information is available to Georgia taxpayers under the Freedom of Information Act.

Appealing an Offer in Compromise in Georgia

Informal negotiations to request an OIC reconsideration can be made by contacting the IRS administrator who made the first OIC denial decision. The IRS frequently negotiates with the taxpayer to find an offer which is acceptable to the Georgia taxpayer and the IRS. If informal negotiations fail, Georgia taxpayers can make a more formal written appeal to the Internal Revenue Service with in thirty days from the date of the OIC denial letter.

Completing an Offer in Compromise

To file an Offer in Compromise the Georgia taxpayer will have to complete the following tasks:

  • Submit a series of Offer in Compromise forms and financial documents to the Internal Revenue Service. OIC required documentation can include: Georgia taxpayer’s pay stubs, bank records, and vehicle information.
  • Georgia taxpayers will have to file all Internal Revenue Service federal tax returns on or before the federal tax deadline for the next 5 years
  • All self-employed Georgia workers will have to make estimated federal tax payments and file all federal tax returns each quarter
  • Georgia taxpayers must pay all Internal Revenue Service federal tax payments (excluding the amount outlined in the OIC offer) for the next 5 years
  • Georgia taxpayers must agree to pay the amount outlined in the Offer in Compromise agreement
  • Georgia taxpayers must agree to let the Internal Revenue service keep all IRS tax refunds and apply them to the tax debt prior to submitting the Offer in Compromise
  • The IRS will apply any tax refund to the Georgia taxpayers back taxes for the calendar year that the OIC is approved

Failure to fulfill the terms outlined in the OIC agreement can give the Internal Revenue Service the legal right to revoke the Offer in Compromise and charge the Georgia taxpayer with the full amount of IRS tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides financial information to the Internal Revenue Service about the Georgia taxpayer’s financial status and their ability to repay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional financial information to the Internal Revenue Service about the Georgia taxpayer’s ability to pay their tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the IRS about the Georgia taxpayer’s business.  Georgia taxpayers are required to submit tax Form 433-B if their business tax debt is included in the Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Georgia taxpayers must complete this form if they are requesting the Offer in Compromise fee waiver.

Negotiating An Offer In Compromise In Wisconsin

Offer in Compromise (OIC) may allow Wisconsin taxpayers to pay the Internal Revenue Service (IRS) less than the full amount of IRS tax debt owed. The IRS has sole authority not only to collect federal taxes but to decide how much money they are willing to accept to settle tax debt. The IRS may accept an Offer in Compromise if the taxpayer meets certain conditions and if the IRS is convinced the tax can not be paid with an installment agreement or with a lump sum payment. The goal of the IRS is always to ensure the taxpayer pays as much tax possible, for the lease cost to the government and in the shortest time frame possible.

The IRS currently accepts 20-25% of all initial Offer in Compromise offers. If the OIC is denied, the Wisconsin taxpayer may be able to appeal, but if negotiations or appeals are refused, the taxpayer will not have any legal recourse against the IRS to compel them to accept an Offer in Compromise.

Offer in Compromise can be time consuming, expensive and difficult to implement. For the OIC review process the IRS collects detailed financial data, and if the OIC is denied this data can be used to continue aggressive tax collection efforts.

Offer in Compromise may be a good way for some Wisconsin taxpayers to settle their tax debt for a fraction of the full amount of tax owed, but it is just one of several IRS tax settlement options available. It may not always be the best option. Wisconsin taxpayers who need more information about Offer in Compromise should contact a tax professional.

Qualifying for Offer in Compromise in Wisconsin

The IRS does not accept all Offer in Compromise offers. OIC offers are only accepted if the taxpayer’s debt meets one of the following conditions:

Doubt as to Collectibility – If the IRS doubts their ability to collect tax debt before the statutory period ends, or if they determine that the cost to collect the IRS tax debt is too high, the IRS may accept an Offer in Compromise.

Doubt as to Liability– This condition is not used often, but if the IRS determines a taxpayer’s debt is incorrect they may accept an Offer in Compromise. Errors could occur from a miscalculation, misinterpretation of tax law or if additional tax data is offered by the taxpayer.

Effective Tax Administration- Wisconsin taxpayers who may face an economic hardship which would be inequitable or unfair if they paid their federal tax debt may qualify for an Offer in Compromise. This condition is most frequently used for the elderly and handicapped.

Rejection of Offer in Compromise in Wisconsin

If the Offer in Compromise is rejected, the IRS is required to send a letter to the Wisconsin taxpayer listing the reasons for the OIC denial. Most Offer in Compromise offers are denied because the IRS considers the offer too low. If this is the case, the IRS should be able to provide a counter offer to the Wisconsin taxpayer.  All Offer in Compromise information which is not provided to the taxpayer can be legally collected and reviewed under the Freedom of Information Act.

Appealing an Offer in Compromise in Wisconsin

If the Offer in Compromise is denied, the taxpayer can begin the appeal’s process informally by contacting the IRS administrator who reviewed their first Offer in Compromise offer. The IRS may or may not be willing to negotiate until a settlement, which is agreeable to both the federal government and the Wisconsin taxpayer, is found.

If the Internal Revenue Service refuses to negotiate informally, the Wisconsin taxpayer can file a formal appeal by sending a written letter to the IRS within 30 days from the date of the Offer in Compromise denial letter.

Wisconsin taxpayers who have been denied an Offer in Compromise can hire a tax professional to help with all negotiations and OIC appeals. Tax professionals who can help include: tax attorneys, certified public accountants and enrolled agents. The Offer in Compromise letter should include the following information:

  • Wisconsin taxpayer’s full name, address, social security number and telephone number.
  • A statement from the Wisconsin taxpayer outlining the reasons they are appealing the Offer in Compromise denial.
  • All proposed changes that the Wisconsin taxpayer wants updated.
  • A list of the tax periods or years in question.
  • A list of the federal tax laws which support the Wisconsin taxpayer’s position.
  • The Wisconsin taxpayer must sign the Offer in Compromise appeal letter under penalty of perjury.

Completing an Offer in Compromise

To file an Offer in Compromise the Wisconsin taxpayer must complete the following tasks:

  • Submit all of the required financial documents and OIC forms to the IRS. Documentation can include: payroll stubs, bank records, and vehicle information.
  • Wisconsin taxpayers must file all IRS tax returns on or before the federal tax deadline for the next 5 years.
  • All Wisconsin workers who are self-employed must make estimated tax payments and file all IRS tax returns each quarter.
  • Wisconsin taxpayers must pay all IRS tax payments (excluding the amount outlined in the Offer in Compromise offer) for the next 5 years.
  • Wisconsin taxpayers must pay all of the taxes outlined in the Offer in Compromise.
  • Wisconsin taxpayers must agree to have all IRS refund payments applied to their tax debt for the calendar year that the Offer in Compromise is approved.

The IRS has the authority to cancel an Offer in Compromise agreement if the Wisconsin taxpayer fails to meet the Offer in Compromise requirements. If the OIC is cancelled, the full amount of IRS tax debt may be reinstated.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides financial information about the Wisconsin taxpayer’s financial status and their ability to pay their federal taxes.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional financial information about the Wisconsin taxpayer’s ability to pay their federal tax debt to the IRS.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B outlines financial information about the Wisconsin taxpayer’s business and only needs to be submitted by the Wisconsin taxpayer if their business debt is part of their Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. IRS Form 656-A only needs to be completed and submitted if the Wisconsin taxpayer is requesting an Offer in Compromise fee waiver.

Offer in Compromise For Georgia Taxpayers

Georgia taxpayers who owe federal back taxes have several IRS tax settlement options available to settle the debt. One of the most common programs is Offer in Compromise or OIC. Offer in Compromise allows the taxpayer to make an “offer” for less than the full amount of tax debt owed and the Internal Revenue Service (IRS) will either choose to accept or reject the offer. If the IRS decides to accept the offer, it is considered a “compromise” and will completely settle the IRS tax debt. The IRS has an incentive to accept OIC offers because it allows them to avoid declaring a tax debt as not collectible or extend the payment period with a protracted installment agreement.

The federal government has given the Internal Revenue Service the authority to collect tax debt from United States taxpayers. With this authority, the IRS also has sole discretion to accept or decline Offer in Compromise offers.  The IRS frequently will settle IRS tax debt if they believe the debt is unlikely to be collected, there is question to the amount of tax debt owed or if paying the taxes will cause a Georgia taxpayer extreme financial difficulty. Currently the Internal Revenue Service accepts approximately 25% of the initial Offer in Compromise offers. Unfortunately, if the IRS declines the OIC offer, the Georgia taxpayer will have no legal recourse against the IRS and the IRS can continue their aggressive debt collection efforts with the detailed information the Georgia taxpayer has provided.

All Georgia residents who are considering an Offer in Compromise should contact a tax professional for assistance. Offer in Compromise can be a complicated, time consuming and expensive tax settlement option. Penalties and interest will continue to accrue until the offer is accepted. There are several IRS tax settlement options available to eliminate tax debt and Offer in Compromise may not be the best option for all Georgia taxpayers.

Qualifying for Offer in Compromise in Georgia

For a Georgia taxpayer to qualify for Offer in Compromise, they must meet one of the following conditions:

Doubt as to Liability – The Internal Revenue Service must agree that there is some doubt as to the amount of IRS tax debt which has been assessed to the Georgia taxpayer. This condition is not often met.

Doubt as to Collectibility – The Internal Revenue Service must agree that it is unlikely that the assessed taxed liability will be collected now or in the future or the IRS considers the cost to collect the tax debt too high.

Effective Tax Administration–  Under certain conditions, collection of the IRS tax debt will cause a Georgia taxpayer an economic hardship which would be inequitable or unfair. If the IRS agrees, they will accept an Offer in Compromise. This condition is most frequently accepted for the elderly and handicapped.

Rejection of Offer in Compromise in Georgia

Up to 80% of Offer in Compromise offers will be declined. More will be accepted after a series of negotiations or a formal appeal. If the IRS rejects a Georgia taxpayer’s offer they are required to send written notification outlining the reason for the denial and what amount they would consider reasonable to settle the debt. New OIC forms will only have to be resubmitted if the OIC deadline has passed or if the taxpayer’s financial information has significantly changed. All Offer in Compromise information is available to Georgia taxpayers under the Freedom of Information Act.

Appealing an Offer in Compromise in Georgia

Informal negotiations to request an OIC reconsideration can be made by contacting the IRS administrator who made the first OIC denial decision. The IRS frequently negotiates with the taxpayer to find an offer which is acceptable to the Georgia taxpayer and the IRS. If informal negotiations fail, Georgia taxpayers can make a more formal written appeal to the Internal Revenue Service with in thirty days from the date of the OIC denial letter.

Completing an Offer in Compromise

To file an Offer in Compromise the Georgia taxpayer will have to complete the following tasks:

  • Submit a series of Offer in Compromise forms and financial documents to the Internal Revenue Service. OIC required documentation can include: Georgia taxpayer’s pay stubs, bank records, and vehicle information.
  • Georgia taxpayers will have to file all Internal Revenue Service federal tax returns on or before the federal tax deadline for the next 5 years
  • All self-employed Georgia workers will have to make estimated federal tax payments and file all federal tax returns each quarter
  • Georgia taxpayers must pay all Internal Revenue Service federal tax payments (excluding the amount outlined in the OIC offer) for the next 5 years
  • Georgia taxpayers must agree to pay the amount outlined in the Offer in Compromise agreement
  • Georgia taxpayers must agree to let the Internal Revenue service keep all IRS tax refunds and apply them to the tax debt prior to submitting the Offer in Compromise
  • The IRS will apply any tax refund to the Georgia taxpayers back taxes for the calendar year that the OIC is approved

Failure to fulfill the terms outlined in the OIC agreement can give the Internal Revenue Service the legal right to revoke the Offer in Compromise and charge the Georgia taxpayer with the full amount of IRS tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides financial information to the Internal Revenue Service about the Georgia taxpayer’s financial status and their ability to repay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional financial information to the Internal Revenue Service about the Georgia taxpayer’s ability to pay their tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the IRS about the Georgia taxpayer’s business.  Georgia taxpayers are required to submit tax Form 433-B if their business tax debt is included in the Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Georgia taxpayers must complete this form if they are requesting the Offer in Compromise fee waiver.

Offer in Compromise In Indiana

Indiana taxpayers who owe the IRS back taxes may be able to use one of their IRS tax settlement options to settle their debt. One of the most popular of these programs is Offer in Compromise or OIC. Offer in Compromise can be complicated and time consuming, but in many cases the IRS may be willing to accept much less than the total amount of taxes owed to settle tax debt.

Offer in Compromise allows the Indiana taxpayer to make an offer to the IRS. If the IRS accepts the offered amount, the debt outlined in the OIC will be settled. Penalties and interest will continue to accrue while the IRS is considering the OIC.  The IRS frequently will consider an Offer in Compromise to help taxpayers improve their chances of meeting future tax debt and eliminate the need to accept an installment agreement or declare taxes as not collectible.

Most Offer in Compromise offers are not accepted. More may be accepted after negotiations or on appeal. The IRS will only accept an offer if there is doubt as to the amount of debt assessed, doubt as to the ability of the IRS to collect the tax debt, or payment of the debt will cause the taxpayer hardship which is unfair or inequitable. If the IRS denies the Offer in Compromise offer, they can use the information they have collected to collect an Indiana taxpayer’s past tax debt.

Offer in Compromise is one of several IRS tax settlement options available to Indiana taxpayers. Tax professionals such as an enrolled agent, tax attorney or certified public accountant can provide information and details about IRS tax settlement plans.

Qualifying for Offer in Compromise in Indiana

Not all Indiana taxpayers who request an Offer in Compromise will be eligible to receive one. To qualify for an OIC taxpayers must meet one of the following conditions:

Doubt as to Liability – Indiana taxpayers who can prove the amount of taxes they have been charged is incorrect may qualify for an OIC. Errors in debt calculation can occur from an IRS miscalculation or new financial information from the taxpayer. This qualification is seldom met.

Doubt as to Collectibility –  The amount of tax debt is not in doubt, only the ability of the IRS to collect the debt now or in the future. The IRS may also accept an OIC under this condition if they believe the cost to collect the debt is too high.

Effective Tax Administration- Indiana taxpayers, under certain conditions, may experience an inequitable or unfair hardship if they pay their tax debt. If the IRS agrees they may qualify for an OIC.  The elderly, individuals with physical or mental disabilities or individuals who have expensive medical bills most frequently meet this condition.

Rejection of Offer in Compromise in Indiana

Offer in Compromises may be rejected up to 80% of the time by the IRS. The IRS allows negotiations and appeals, but the federal government has given them sole authority to determine if an OIC offer will be accepted. If the IRS denies an OIC, the taxpayer will not have legal recourse.

The IRS must send a written letter to the Indiana taxpayer outlining why the OIC offer was declined. The IRS most frequently denies OIC offers because they believe the offer is too low. The IRS should be able to provide an amount to the Indiana taxpayer which the IRS would be willing to accept.

All OIC appeals must be made to the Internal Revenue Service within 30 days from the date of the Offer in Compromise denial letter. Indiana taxpayers must submit new OIC forms if the OIC deadline has expired or if the taxpayer’s financial information has substantially changed. If the IRS refuses to provide information to the taxpayer, information can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Indiana

Negotiations for an Offer in Compromise can usually be made by contacting the IRS administrator who denied the first OIC offer. Formal appeals can also be made by Indiana taxpayers by sending a written letter to the IRS within 30 days from the date of the OIC denial.

Completing an Offer in Compromise

Indiana taxpayers must complete the following tasks for an Offer in Compromise:

  • Offer in Compromise forms must be completed and submitted to the IRS.
  • Financial information which is requested by the IRS must be submitted in a timely fashion. Financial information may include: Indiana taxpayer’s pay stubs, banking records, and vehicle information.
  • Indiana taxpayers must file all federal tax returns on or before the tax deadline for the next five years.
  • All self-employed Indiana taxpayers must pay their estimated federal tax payments and file their tax returns every quarter.
  • All federal tax payments (except the amount outlined in the Offer in Compromise) must be paid for the next five years.
  • Indiana taxpayers must pay the amount outlined in the Offer in Compromise.
  • All refunds will be applied to the Indiana taxpayer’s tax debt before the Offer in Compromise offer is accepted.
  • The IRS will apply any refund to the Indiana taxpayer’s tax debt for the calendar year that the Offer in Compromise is approved.

If the Indiana taxpayer does not meet all of the requirements in their Offer in Compromise, the IRS has the legal authority to terminate the Offer in Compromise and charge the Indiana taxpayer the total amount of tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Indiana taxpayers must complete and submit IRS Form 656 to the Internal Revenue Service to provide information about their ability to repay their federal tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides financial information to the IRS about the status of the Indiana taxpayer.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the IRS about the Indiana’s taxpayers business. This form must be submitted if the business tax debt is part of the OIC.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Indiana taxpayers must submit this form if they are requesting an OIC fee waiver.