Tag Archives: Internal Revenue Service

Negotiating An Offer in Compromise In Mississippi

Outstanding IRS tax debt can be settled using a variety of IRS tax settlement options. Offer in Compromise is one of the most popular of these options because it allows the taxpayer to potentially settle their IRS tax debt for a fraction of the full amount owed. Mississippi taxpayers who have federal tax debt can use Offer in Compromise to make an offer to the IRS. If the Internal Revenue Service (IRS) accepts the offer, it is considered a compromised settlement for all tax debt outlined in the Offer in Compromise agreement.

Up to 80% of first time OIC offers will be denied by the IRS. The IRS will however, generally be willing to negotiate to find an offer amount which is agreeable to both the federal government and the Mississippi taxpayer. The IRS prefers for all tax debt to be paid in one lump sum or with an installment agreement and will only accept an OIC if these two options are not possible. Penalties and interest will accrue on the federal tax debt while the Offer in Compromise is under review. If the Offer in Compromise is accepted, collection actions will cease and penalties and interest will stop accruing.

OIC is one of several IRS tax settlement options available for Mississippi taxpayers. It can be difficult to implement, expensive and time consuming. The IRS will need detailed financial information about the taxpayer and if the OIC is denied the IRS may use this information to continue tax collection. Mississippi taxpayers should contact a tax professional such as an enrolled tax agent, certified public accountant or tax attorney if they are considering Offer in Compromise.

Three types of Offer in Compromises:

Not all Mississippi taxpayers will receive an Offer in Compromise. The IRS will only accept an OIC if one of the following conditions is met:

1. Doubt as to Liability – If there is doubt as to the accuracy of the IRS tax the IRS may accept an Offer in Compromise. Errors can occur if the IRS administrator misapplied the tax law, made a miscalculation or if the taxpayer produces additional tax information which previously was not considered. This condition is seldom met.

2. Doubt as to Collectibility –  The amount of tax debt is not in question under this condition, only the ability of the IRS to collect the federal debt before the end of the statutory period. If the cost to collect the tax debt is considered too high the IRS may also accept an OIC.

3. Effective Tax Administration- Mississippi taxpayers who can prove paying their federal tax debt could cause a “hardship which is inequitable or unfair” may qualify for an Offer in Compromise. The elderly and the handicapped most frequently meet this condition.

Rejection of Offer in Compromise in Mississippi

The IRS does not accept most Offer in Compromise offers. If the Offer is not accepted the taxpayer may be able to negotiate with the IRS or the Mississippi taxpayer can make a formal OIC appeal. The IRS has been given sole authority by the federal government not only to collect taxes, but to decide if they will accept less than the full amount for payment. Mississippi taxpayers will not have any legal recourse against the IRS if their OIC is denied.

Written notice will be sent to the Mississippi taxpayer if their Offer in Compromise is not accepted. Denials are most often a result of a low offer. If the IRS determines the offer is too low they should be able to provide the taxpayer with an amount which is acceptable. If the IRS refuses to provide Offer in Compromise information to the Mississippi taxpayer, this information can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Mississippi

The first step for the Mississippi taxpayer if their OIC is denied is to try and contact the administrator who reviewed the Offer in Compromise to find out if the IRS is willing to negotiate. If the IRS will not negotiate the Mississippi taxpayer can file a formal OIC appeal by sending a letter to the IRS within thirty-days from the date of the Offer in Compromise denial letter.

The Offer in Compromise appeal’s letter should include the following information:

  • The social security number, full name, home address and telephone number of the Mississippi taxpayer.
  • A statement from the Mississippi taxpayer describing the reasons for the OIC appeal.
  • A statement outlining all of the issues the Mississippi taxpayer wants to negotiate.
  • Information on the tax periods or years in question.
  • Any evidence or a list of the federal tax laws which support the Mississippi taxpayer’s position.
  • The Offer in Compromise appeal letter must be signed by the Mississippi taxpayer under penalty of perjury.

Mississippi taxpayers do not need legal counsel to file an appeal or complete the Offer in Compromise negotiations, but some taxpayers may prefer to have help from tax professionals who have experience with the process. Taxpayers who are seeking legal counsel must choose a tax professional which is one of the following: an enrolled tax agent, a tax attorney or a certified public accountant.

Completing an Offer in Compromise

Mississippi taxpayers must complete the following tasks for the Offer in Compromise:

  • All OIC forms must be sent by the Mississippi taxpayer to the Internal Revenue Service.
  • All financial information must be sent to the IRS. This may include: the Mississippi taxpayer’s employment records and vehicle information.
  • All federal tax returns must be filed on or before the federal tax deadline for the next 5 years.
  • Mississippi self-employed workers must file tax statements and make estimated tax payments each quarter.
  • All IRS tax payments must be made by Mississippi taxpayers for the next 5 years.
  • All Offer in Compromise payments must be made.
  • Refunds will be applied to the Mississippi taxpayer’s debt for the calendar year that the OIC is accepted.

The Internal Revenue Service can cancel the Offer in Compromise if the Mississippi taxpayer fails to complete all the OIC requirements. If the OIC is cancelled, the full amount of the federal tax debt may be reinstated.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Mississippi taxpayers must submit Form 656 and send it to the IRS. This form will help the IRS determine the taxpayer’s ability to repay their tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Mississippi taxpayers must send Form 443-A to the Internal Revenue Service to provide them with more information about the taxpayer’s ability to repay their federal tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Mississippi taxpayers must complete this form 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. Form 565-A will only need to be filed by Mississippi taxpayers who are requesting an OIC fee waiver.

Qualifying For An Offer In Compromise In Oklahoma

If you live in Oklahoma and you have unpaid federal tax debt, you may be able to settle your back tax debt for a fraction of the amount owed. The Internal Revenue Service (IRS) has created a variety of tax settlement options to help Oklahoma taxpayers pay their back tax liability and meet future tax obligations.

Offer in Compromise is one of the most popular tax settlement options available for Oklahoma residents. Oklahoma taxpayers who are considering Offer in Compromise should contact a tax professional for assistance. Unfortunately, the Internal Revenue Service accepts approximately 25% of Offer in Compromise offers at the initial application level and Oklahoma taxpayers who have been denied an Offer in Compromise will not have legal recourse against the IRS.

Penalties and interest will continue to accumulate while the Offer in Compromise is under review and if the offer is denied the Internal Revenue Service can use the detailed financial information you have provided to them to complete their debt collection actions against you.  Tax professional may be able to help complete the Offer in Compromise application and increase the likelihood the OIC will be accepted.

Qualifying for Offer in Compromise in Oklahoma

The Internal Revenue Service will only accept an Offer in Compromise offer if it meets certain criteria including:

  1. Doubt as to Liability- Oklahoma taxpayers who question the amount of liability they have been assessed may meet the condition of doubt as to liability. The condition is not frequently met.
  2. Doubt as to Collectibility– Under certain conditions the Internal Revenue Service will determine they will not be able to collect federal tax debt. This differs from the first condition in that the amount of debt is not in question, only the ability of the Internal Revenue Service to collect the debt.
  3. Effective Tax Administration– Certain Oklahoma residents will not be able to pay federal tax debt with out “an economic hardship which is inequitable and unfair”. If the Internal Revenue Service agrees with this determination, they will accept an Offer in Compromise. In most cases this condition will apply for the elderly and the disabled.

Rejection of Offer in Compromise in Oklahoma

The Internal Revenue Service will accept approximately 25% of the OIC offers it receives. Oklahoma taxpayers who are denied will be sent written notification which outlines the reason the OIC was denied and the amount of money the IRS would consider reasonable. The Internal Revenue Service most frequently denies Offer in compromise offers because they have included the offer was too low. If the Internal Revenue Service refuses to provide information concerning an Offer in Compromise, Oklahoma taxpayers are legally allowed to access it under the Freedom of Information Act.

Oklahoma taxpayers can contact a tax professional for information about the Offer in Compromise appeals process. Oklahoma residents who are filing an appeal will not have to file another Form 656 if their financial data has not changed significantly. New forms may need to be filled out for Oklahoma taxpayers who have failed to file an appeal with in the specified time frame.

The Internal Revenue Service has no legal obligation to Oklahoma residents to accept OIC appeals, but in many cases they will be willing to negotiate with them to help the taxpayer pay their federal tax liability.

Appealing an Offer in Compromise in Oklahoma

Oklahoma taxpayers who have been denied an Offer in Compromise may hire a tax professional or personally contact the IRS administrator who reviewed their Offer in Compromise application and attempt to re-negotiate their offer. If these negotiations fail, a more formal appeal’s process is available. Offer in Compromise offers can be appealed by sending a written request to the Internal Revenue Service with in thirty days from the date of the Offer in Compromise denial letter.

Steps to file an Offer in Compromise

Oklahoma residents who want to submit an Offer in Comprise must complete the following tasks:

  1. Submit detailed financial information to the Internal Revenue Service
  2. File all past and present federal tax returns to the Internal Revenue Service
  3. All self-employed Oklahoma residents must file estimated taxes and tax returns quarterly
  4. Oklahoma residents must have paid their tax debt for all periods not covered by the Offer in Compromise

Oklahoma residents must fill out the following Offer in Compromise forms:

  1. IRS Form 656- Offer in Compromise. Oklahoma taxpayers must complete IRS Form 656 which will provide detailed financial information for the IRS and the taxpayer’s ability to pay their tax debt payment.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed. This form will provide more data about the Oklahoma taxpayer and their ability to pay IRS tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. This OIC form is similar to the Internal Revenue Service Form 433-A. Oklahoma taxpayers will complete this form if their business tax debt is part of their Offer in Compromise offer.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. This form is completed only if the Oklahoma taxpayer is requesting an Offer in Compromise fee waiver.

Oklahoma Tax Professionals

Can Oklahoma taxpayers complete an Offer in Compromise with out a tax professionals help? Certainly, but the Internal Revenue Service is an aggressive collector. Their collection tactics will be much more aggressive and far reaching than other tax collectors. If the Internal Revenue Service has begun wage garnishments, bank account levies, or repossession of your personal assets, it is important to get help.

Tax professionals have experience negotiating Offer in Compromises and they know how to evaluate a taxpayer’s financial situation and make a fair and reasonable offer. Offer in Compromise is just one of several tax settlement options and may not be the best option for you or your family.

Offer in Compromise for Arizona State Tax Debt

In the state of Arizona, if you owe state taxes and the taxes are determined to be uncollectible or the state determines the cost of collection exceeds the amount of the liability owed, Offer in Compromise may be an option to settle your state tax liability.

The Arizona state Offer in Comprise program for settling tax liability is not unlike the program offered by the Internal Revenue Service to pay federal tax debt. Offer in Compromise will allow the Arizona taxpayer to pay a reduced amount and eliminate their tax liability, but also increases the likelihood the taxpayer will stay current on future state tax payments.

Offer in Compromises will only be accepted if you meet the following criterion:

  • All income tax returns for the previous three years must be completed.
  • For businesses, all licenses and tax filings must be current.

Completing an Offer In Compromise

One of the first steps in Offer in Compromise is to discuss your tax liability and financial situation with an Arizona Tax Attorney. Tax Attorneys are familiar with all the tax settlement options and can discuss the pros and cons of each. To complete an Offer in Compromise for state tax liability you will need to complete the following tasks:

  1. Review the information in the Arizona Offer in Compromise booklet and make sure you understand all of the financial forms. An Arizona Tax Lawyer will be able to answer your questions about these forms.
  2. Complete the Statement of Offer form. Verify all the information is complete. Failure to complete the forms accurately may delay processing. A Revenue Officer and the Arizona Department of Revenue can provide the balance of the Arizona state taxes you owe. Their phone number is: 602-716-7787
  3. Determine the amount that you can pay. Forms will not be accepted with out an offer. Offers should reflect the maximum capacity you have to pay. It may be necessary to contact an Arizona Tax Attorney who can provide information about reasonable offers given your current financial situation. Information about how you will pay the tax debt and the source of your funds should be included on your Statement of Offer form. In addition you must list all the federal tax liability you owe to the Internal Revenue Service, complete a financial statement and have all of the responsible parties sign the Statement of Offer.
  4. Deliver your Offer in Compromise forms- Forms can be hand delivered to any location of the Arizona Office of Revenue Services, delivered to a field representative or mailed to the Arizona Office of Revenue Services.

Arizona Department of Revenue
Attention: Bankruptcy/Litigation
PO Box 29070
Phoenix, AZ 85038-9070

The Offer in Compromise will only apply to the current tax liability at the time you complete and submit the form. If the Arizona Department of Revenue may determine you owe additional taxes through audits or amended returns. Failure to pay additional state taxes could result in aggressive collection tactics by the department.

You are responsible for the total amount of Arizona state tax liability until the Arizona Department of Revenue accepts the Offer in Compromise in writing, and you have met the conditions of the Offer in Compromise offer. Failure to meet your obligations under the accepted Offer in Compromise will allow the Arizona Department of Revenue to void the Offer in Compromise and continue their collection efforts for the state tax liability with accrued interest.

Information Required for Offer in Compromise

  • Collection of Statement Form must be completed
  • Statement of Offer form must be completed and signed
  • Three consecutive pay stubs for all parties involved in the Offer in Compromise
  • Bank Statements for the last 90 days
  • All medical bills (not covered by insurance)
  • Copy of your federal tax return and copies of any Offer in Compromise agreements with the Internal Revenue Service (if applicable)
  • Information for any federal disability benefits or income
  • Current and prior year income and commission statements
  • Credit card bills for the last three months
  • All student loan agreements
  • Copy of rental or lease agreements for all properties your own
  • Information for all retirement accounts including: 401K, pension, dividends, trust information
  • Information for all accounts receivables
  • Current medical diagnosis if relevant to your Offer in Compromise

Processing an Arizona state Offer in Compromise

It could take up to 90 days to process your Offer in Compromise. It is not unusual to have to provide additional information to complete the processing of your offer. The Arizona Department of Revenue will send written notification if the Offer in Compromise has been accepted.  Offers can be withdrawn by calling the Arizona Department Revenue Office and speaking to a Revenue Officer.

Collection efforts may be suspended while your Offer in Compromise is under review unless collection is jeopardized by a delay. It is possible to appeal the decision to continue collections by contacting the Problem Resolution Officer. Unfortunately, their decision is final for the taxpayer.

Negotiating An Offer in Compromise In North Carolina

All taxpayers who have outstanding tax debt may be able to find relief through Offer in Compromise, one of the IRS most popular methods for settling IRS tax debt. Offer in Compromise or OIC may allow North Carolina taxpayers to make a settlement offer to the IRS for a fraction of the total amount of tax owed. If the Internal Revenue Service accepts the offer or “compromise” the tax debt outlined in the OIC is considered settled.

The IRS will not accept all OIC offers. OIC offers will only be accepted if the IRS concludes the tax debt can not be paid in a lump sum payment or through an installment agreement. The IRS currently denies approximate 80% of first time OIC offers but may accept more after negotiations or a formal appeal is made.

North Carolina taxpayers who are the target of aggressive IRS collection actions or who have outstanding tax debt should contact a tax professional for help. Failure to pay federal tax debt can result in wage garnishments, property repossession, fines, bank levies or imprisonment.  Offer in Compromise can be expensive, difficult to implement, and time consuming. OIC is one of several IRS tax settlement options and may not be right choice for all North Carolina taxpayers.

Three types of Offer in Compromises:

1. Doubt as to Liability –  If the Internal Revenue Service believes the amount of tax assessed against a North Carolina taxpayer could be incorrect, they may be willing to accept an Offer in Compromise. This condition does not occur often, but could occur if there was an IRS miscalculation, the tax laws were applied incorrectly or additional information is supplied by the taxpayer.

2. Doubt as to Collectibility –  If the IRS does not think they will be able to collect the IRS tax debt before the statutory period ends they may be willing to accept an Offer in Compromise. Additionally, this condition could be applied if the cost to collect the debt is considered too high.

3. Effective Tax Administration- North Carolina taxpayers who are unable to pay their IRS tax debt without suffering a hardship which would be considered “inequitable or unfair” may qualify for an Offer in Compromise. This condition is generally applied to the elderly and handicapped.

Rejection of Offer in Compromise in North Carolina

The federal government has given the IRS the authority to accept and deny Offer in Compromise offers. Most OIC offers are denied and the North Carolina taxpayer does not have the ability to sue or pursue any legal action against the IRS to compel them to accept the offer.

The Internal Revenue Service will send a written letter to the North Carolina taxpayer if they deny the Offer in Compromise. This denial notice should detail the reason the OIC has been denied and if the offer was considered too low the letter should list the amount the IRS would consider reasonable. If the IRS refuses to provide North Carolina taxpayers information about their Offer in Compromise, taxpayers can obtain this information under the Freedom of Information Act.

Appealing an Offer in Compromise in North Carolina

Negotiations usually can begin with the IRS administrator who first denied the OIC application. If the administrator is unable or unwilling to negotiate to find an agreeable offer, a more formal appeal can be made by writing a letter to the IRS within 30 days from the date of the OIC denial letter.

The Offer in Compromise appeal letter should contain the following information:

  • The North Carolina taxpayer’s social security number, name, address and telephone number.
  • A copy of the statement from the North Carolina taxpayer detailing the reasons they are appealing the OIC denial.
  • A list of the proposed changes or items that the North Carolina taxpayer wants changed.
  • Documentation which provides information on the tax periods or years in question.
  • Documentation about the federal tax laws or any other facts which may support the North Carolina taxpayer’s position.
  • The appeal’s letter must be signed by the North Carolina taxpayer under penalty of perjury.

The IRS will allow the North Carolina taxpayer to represent themselves for all Offer in Compromise negotiations and appeals. If the North Carolina taxpayer prefers to seek legal counsel they must get help from an enrolled tax agent, a tax attorney or a certified public accountant.

Completing an Offer in Compromise

The following tasks must be completed by the North Carolina taxpayer:

  • All OIC documentation must be completed and sent to the Internal Revenue Service by the North Carolina taxpayer.
  • All requested financial information must be submitted to the IRS by the North Carolina taxpayer. Requested Information may include: a North Carolina taxpayer’s employment information, banking and vehicle information.
  • All federal tax returns must be completed and sent to the Internal Revenue Service on or before the tax deadline for the next 5 years.
  • All self-employed North Carolina taxpayers must make estimated federal tax payments and submit their federal tax returns every quarter to the IRS.
  • All IRS taxes must be paid by North Carolina taxpayers for the next five years.
  • North Carolina taxpayers must pay all tax payments outlined in the OIC agreement.
  • The IRS will apply all tax refunds to the North Carolina taxpayer’s federal tax debt for the calendar year that the OIC is accepted.

If North Carolina taxpayers do not meet all of the Offer in Compromise requirements the OIC can be cancelled and the full amount of federal tax debt reinstated.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. North Carolina taxpayers must submit Form 656 to the IRS to document their ability to pay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. North Carolina taxpayers must send Form 443-A to the IRS to provide additional information about their ability to repay their federal tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. North Carolina taxpayers must send Form 433-B to the IRS 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. North Carolina taxpayers must send Form 565-A if they are requesting an OIC fee waiver.

Offer in Compromise For New Hampshire Taxpayers

Offer in Compromise is a tax settlement option which taxpayers can use to settle outstanding tax debt. Offer in Compromise may allow a New Hampshire taxpayer to make an offer to the IRS and if the IRS accepts the offer, the taxpayer’s outstanding tax debt will be settled. Many times the offer can be for much less than the full amount of IRS tax debt owed.

New Hampshire taxpayers will have to meet several requirements to qualify for an OIC and the IRS will only accept an Offer in Compromise if they are certain the taxpayer can not pay the full IRS debt with one lump sum payment or with an installment agreement. Most Offer in Compromise agreements are not accepted and the IRS will have sole authority to decide if they will accept all appeals or negotiate offers. If the OIC is denied, New Hampshire taxpayers will not have legal recourse against the IRS.

If an Offer in Compromise is accepted by the IRS penalties and interest will stop accruing, and the IRS will cease all collection efforts against the taxpayer. Offer in Compromise is one of several IRS tax settlement options and it can be time consuming and difficult to implement. Detailed information will be requested by the IRS and if the OIC is denied, the IRS can use this information to continue their collection actions. New Hampshire taxpayers who have outstanding tax debt or who have become the target of IRS collection effort should contact a tax professional for help.

Three types of Offer in Compromises:

New Hampshire taxpayers must meet one of the following conditions to qualify for Offer in Compromise:

1. Doubt as to Liability – The Internal Revenue Service will accept an Offer in Compromise if they believe there may have been an error in the calculation of the federal tax. Errors do not occur often, but they may occasionally happen as a result of an error in calculation, a misapplication of tax law or if the taxpayer provides additional tax information to the IRS.

2. Doubt as to Collectibility –  The Internal Revenue Service may be willing to accept an OIC if they doubt they will be able to collect the IRS tax debt either now or before the statutory period ends. If the cost to collect is considered too high, the IRS also may grant an Offer in Compromise.

3. Effective Tax Administration- The Internal Revenue Service may accept an Offer in Compromise if they believe New Hampshire taxpayers will experience a hardship which is “inequitable or unfair” if they pay their tax debt. This condition is generally applied to the elderly and handicapped.

Rejection of Offer in Compromise in New Hampshire

The IRS accepts approximately 20% of the initial OIC offers. All OIC offers which are denied can be appealed by New Hampshire taxpayers by writing a letter within 30 days from the date of the Offer in Compromise denial letter. The IRS will have sole authority to accept all Offer in Compromise appeals.

OIC denial letters must outline the reasons for the Offer in Compromise denial and if the IRS believes the offer was too low, the letter should also document an amount which the IRS considers reasonable. If the IRS refuses to provide the taxpayer with Offer in Compromise information the New Hampshire taxpayer can request the information under the Freedom of Information Act.

Appealing an Offer in Compromise in New Hampshire

The first step in the Offer in Compromise appeal process is to contact the IRS administrator who made the first denial decision. Negotiations with the administrator are not always successful, but sometimes they may be willing to work with the taxpayer to find a settlement amount which is agreeable to the IRS and the taxpayer. If the IRS administrator is not willing to negotiate then a formal appeal can be made to the Internal Revenue Service by sending an appeal letter within thirty-days from the date of the OIC denial letter.

The following information should be included in the OIC appeal letter:

  • The social security number, name, address and telephone number of the New Hampshire taxpayer.
  • Documentation from the New Hampshire taxpayer outlining the reasons for the Offer in Compromise appeal.
  • A list of the items which the New Hampshire taxpayer would like to negotiate.
  • A list of the tax periods or years in question.
  • Documented evidence which support the New Hampshire taxpayer’s position.
  • The OIC appeal letter must be signed by the New Hampshire taxpayer under penalty of perjury.

Offer in Compromise appeals can be negotiated and completed by the New Hampshire taxpayer without legal counsel, but if taxpayers want legal help they will need to hire a tax attorney, certified public accountant or an enrolled tax agent.

Completing an Offer in Compromise

New Hampshire taxpayers must complete all of the following tasks for an Offer in Compromise:

  • All Offer in Compromise forms must be sent by the New Hampshire taxpayer to the IRS.
  • All financial information must be sent to the IRS by the New Hampshire taxpayer including: employment records and vehicle information.
  • All federal tax returns must be completed and filed on or before the federal tax deadline for the next 5 years.
  • New Hampshire self-employed workers must file quarterly tax statements and make estimated federal tax payments each quarter.
  • All IRS taxes must be paid by New Hampshire taxpayers for the next 5 years.
  • All Offer in Compromise payments must be made to the IRS by New Hampshire taxpayers according to the OIC agreement.
  • All federal tax refunds will be applied to the New Hampshire taxpayer’s debt for the calendar year that the OIC is accepted.

The IRS has the legal authority to cancel all OIC agreements if the New Hampshire taxpayer does not complete all of the OIC requirements. If the Offer in Compromise is cancelled the full amount of the IRS tax debt can be charged back to the New Hampshire taxpayer.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. New Hampshire taxpayers must complete Form 656 and send it to the Internal Revenue Service. This form will document 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. New Hampshire taxpayers must send Form 443-A to the IRS to provide additional information to the IRS about their ability to repay their federal debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. This form will only need to be completed and sent to the IRS by New Hampshire taxpayers if their business debt is included in the Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Form 656-A only needs to be completed by New Hampshire taxpayers if they are requesting an Offer in Compromise fee waiver.

Qualifying For An Offer In Compromise In Kentucky

Kentucky taxpayers who owe IRS back taxes may have the opportunity to settle their tax debt for a fraction of the total amount owed with an IRS tax settlement option. The most common plan available is Offer in Compromise or OIC. OIC allows a Kentucky taxpayer to make an “offer” to the Internal Revenue Service (IRS) outlining an amount of money they can pay. The IRS can either accept or reject the OIC offer. If the IRS accepts the offer it is considered a “comprise” and after meeting the terms of the Offer in Compromise, the Kentucky taxpayer’s debt is settled.

The Internal Revenue Service will accept an Offer in Compromise to help position the Kentucky taxpayer to fulfill their future tax liability and hopefully avoid an extended installment agreement.  The IRS not only has the authority to collect federal tax debt but also sole discretion to accept an OIC offer. The IRS accepts approximately 25% of OIC offers at the initial application level. More are accepted after negotiations and appeals. If the IRS rejects a Kentucky taxpayer’s offer, the taxpayer will not have legal recourse against the IRS and the IRS can use the detailed financial information they have collected to continue aggressive collections. Penalties and interest will also continue to accrue while the OIC offer is under consideration.

Kentucky residents who need information about Offer in Compromise can contact a tax professional. Offer in Compromise can be complicated, expensive and time consuming. Offer in Compromise is one of several tax settlement options available for taxpayers and may not be the best option for all Kentucky residents.

Qualifying for Offer in Compromise in Kentucky

Kentucky taxpayers who are considering Offer in Compromise must meet one of the following requirements:

Doubt as to Liability –  Kentucky taxpayers who question the amount of tax debt they have been assessed may qualify for an Offer in Compromise. This condition is not frequently met.

Doubt as to Collectibility – The Internal Revenue Service may agree to an Offer in Compromise if there is some question about their ability to collect the debt or if the cost to collect the federal tax debt is too high.

Effective Tax Administration–  Certain Kentucky residents may be granted an Offer in Compromise if paying their federal tax debt could cause an “economic hardship which would be inequitable or unfair”. This condition is most frequently accepted for the elderly and handicapped.

Rejection of Offer in Compromise in Kentucky

The Internal Revenue Service rejects approximately 80% of the Offer and Compromise offers it receives. Additional OIC offers are accepted after formal appeals and negotiations. The Internal Revenue Service must send written information about all OIC denials and if they consider the offer too low, the IRS should be willing to provide information about the amount they would accept. Kentucky residents who are appealing a denial must send a written letter to the IRS with in 30 days from the date of the denial letter. New Offer in Compromise forms will not need to be submitted unless the deadline has passed or the taxpayer’s financial information has substantially changed.

Appealing an Offer in Compromise in Kentucky

Kentucky residents may appeal an Offer in Compromise. Informal negotiations may be made by contacting the IRS administrator who made the first denial. The Internal Revenue Service may be willing to work with the Kentucky taxpayer to find an OIC amount which is acceptable to both parties. A more formal appeal can be made by writing a letter to the Internal Revenue Service within thirty days from the date of the Offer in Compromise denial letter.

Completing an Offer in Compromise

Kentucky taxpayers must complete the following tasks for an OIC:

  • Taxpayers must submit Offer in Compromise forms and documents to the Internal Revenue Service. Documents may include: Kentucky taxpayer’s pay stubs, bank records, and vehicle information.
  • The Internal Revenue Service federal tax returns must be filed on or before the federal tax deadline for the next five years.
  • All self-employed Kentucky workers must submit estimated federal tax payments and file all federal tax returns each quarter.
  • Kentucky taxpayers must pay federal tax payments (excluding the amount outlined in the OIC offer) for the next five years.
  • Kentucky taxpayers must agree to pay the amount outlined in the OIC agreement.
  • Kentucky taxpayers must agree to let the IRS keep all federal tax refunds and apply them to the tax debt prior to accepting the Offer in Compromise.
  • The Internal Revenue Service will use all tax refunds to pay back taxes for the calendar year that the OIC is approved.

The Internal Revenue Service can legally revoke an Offer in Compromise and charge Kentucky taxpayers all of the taxes due for failing to meet the agreed upon terms of the Offer in Compromise.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 will provide financial information to the IRS about the Kentucky taxpayer’s financial status and 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 additional financial information about the Kentucky taxpayer to the Internal Revenue Service about the taxpayer’s ability to pay their tax federal debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the Internal Revenue service about the Kentucky taxpayer’s business. Form 433-B is only needed if the 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. This form will only need to be submitted if the taxpayer is requesting a waiver for the Offer in Compromise.

Submitting an Offer in Compromise in Hawaii

Offer in Compromise or OIC is an agreement between the Internal Revenue Service (IRS) and the Hawaiian taxpayer which may allow the taxpayer to settle their IRS tax debt for less than the total amount owed.  The Internal Revenue Service will only accept an OIC offer if the taxpayer meets certain conditions and the tax amount can not be paid in full or through an installment agreement.

The IRS does not accept all OIC offers, in fact, they currently deny up to 80%.  The IRS may be willing to accept an offer if they believe it will put the taxpayer in a position to meet all future tax debt obligations.  Failure to pay tax debt can result in wage garnishment, property repossession or bank account levies.

Hawaiian taxpayers who are considering an Offer in Compromise may want to contact a tax professional. Offer in Compromise can be expensive, time consuming and difficult to implement. It is only one option for Hawaiian taxpayers and may not be the best option.

Three types of Offer in Compromises:

1. Doubt as to Collectibility – The IRS doubts the Hawaiian taxpayer will be able to pay the full amount of their tax debt within the statutory time for tax collection.

2. Doubt as to Liability- There must be a legitimate doubt that the amount of IRS tax debt assessed against the Hawaiian taxpayer is correct. This can occur if the IRS examiner made a mistake in the interpretation of the law, the IRS examiner did not consider all of the taxpayer’s financial evidence, or the Hawaiian taxpayer can produce new evidence for the IRS.

3. Effective Tax Administration- The amount of tax debt assessed is correct and the IRS may be able to collect the tax debt, but there is some extenuating circumstance which makes the IRS think payment of the tax debt would cause an economic hardship which is unfair or inequitable.

Rejection of Offer in Compromise in Hawaii

The Internal Revenue Service has been given sole authority to collect taxes and to determine if they will accept Offer in Compromise offers. If the IRS denies a Hawaiian taxpayer’s OIC offer, the taxpayer may be able to appeal the decision, but they will not have any other legal recourse against the IRS.

If the IRS denies an OIC offer they will send written notification to the taxpayer identifying the reason for the denial. If the IRS determines the OIC offer is too low, they may be willing to provide a counter offer or negotiate with the taxpayer to find an offer which is agreeable to both the government and the Hawaiian taxpayer. If the IRS does not provide Offer in Compromise information to the taxpayer this information can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Hawaii

Informal negotiations can often be done by contacting the IRS administrator who made the first OIC denial decision. If a taxpayer wants to make a more formal appeal they will need to send written notice to the IRS within thirty-days from the date of the OIC denial letter.

The formal written request for an OIC appeal must have the following information:

  • Social Security number, telephone number, name and address
  • A statement that the taxpayer is appealing the IRS ruling to the Appeal’s office.
  • A copy of the letter sent to the taxpayer and the taxpayer’s proposed changes or items that the taxpayer wants changed and what the taxpayer does not agree with and why.
  • Document the tax periods or years in question.
  • Identify any tax laws or other authorities which may support the position.
  • Identify any facts that may support the position with which the taxpayer disagrees.
  • The taxpayer must sign the written protest under penalty of perjury.

Hawaiian taxpayers may represent themselves for all OIC appeals, but taxpayers may want to talk to a tax professional such as a tax attorney, certified public accountant or enrolled agent who can answer OIC questions.

Completing an Offer in Compromise

Hawaiian taxpayers must complete the following tasks:

  • Hawaiian taxpayers must complete all OIC forms and submit them to the Internal Revenue Service.
  • Hawaiian taxpayers must submit all requested financial data to the Internal Revenue Service. Financial information includes: taxpayer’s pay stubs, banking and car information.
  • Hawaiian taxpayers must complete and send all federal tax returns to the Internal Revenue Service on or before the federal tax deadline for the next five years.
  • All self-employed Hawaiian taxpayers must pay their estimated IRS taxes and submit their federal tax returns every quarter.
  • All tax payments (except the amount outlined in the OIC agreement) must be paid by Hawaiian taxpayers for the next five years.
  • Hawaiian taxpayers must pay the amount outlined in the Offer in Compromise agreement.
  • The IRS will apply any federal tax refund to the Hawaiian taxpayer’s tax debt for the calendar year that the OIC is approved.

The IRS has the authority to terminate an Offer in Compromise if all the terms and conditions of the agreement are not met. If the Offer in Compromise is terminated, the IRS can charge the taxpayer the original amount of tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Hawaiian taxpayers must submit IRS Form 656 to the Internal Revenue Service to provide detailed financial information about the taxpayer and their 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 about the Hawaiian taxpayer and their ability to pay their federal tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Hawaiian taxpayers will need to submit IRS Form 433-B to the Internal Revenue Service if a taxpayer’s 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. Hawaiian taxpayers who request an Offer in Compromise fee waiver must submit Form 565-A.

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.

Rhode Island Offer in Compromise

Offer in Compromise or OIC is one of the most popular IRS tax settlement options available to taxpayers. Offer in Compromise allows the Rhode Island taxpayer to make an offer to the IRS to settle their IRS tax debt. Frequently the offer is for far less than the full amount of tax debt owed. If the IRS accepts the offer, it is considered a “compromise” and all of the IRS tax debt outlined in the offer will be considered settled.

The IRS denies approximately 80% of first time Offer in Compromise offers, but more may be accepted after a series of negotiations or after a formal appeal. The IRS only accepts OIC offers if the taxpayer meets certain conditions and the IRS does not think they can repay their IRS debt with an installment agreement or with a lump sum payment.

The IRS has been given authority by the federal government to collect taxes which fund the United States federal government. Failure to pay IRS tax debt can result in bank account levies, wage garnishments and property repossession. Rhode Island taxpayers who are the target of the IRS collection actions can contact a tax professional who can provide information about IRS tax settlement options which are currently available to them.

Three types of Offer in Compromises:

There may be many Rhode Island taxpayers who desire an OIC agreement who will not qualify for one. To accept the taxpayer’s OIC offer, the IRS must determine that the taxpayer’s debt meets one of the following conditions:

1. Doubt as to Liability – An OIC offer may be accepted if there is some doubt as to the accuracy of the tax debt which has been assessed. Errors can occur through miscalculations, tax law misinterpretation, or failure to consider all of the taxpayer’s financial information. This condition is not frequently met.

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 debt. An OIC may also be accepted if the IRS has determined collection of the tax is too high.

3. Effective Tax Administration- If the IRS determines the Rhode Island taxpayer may suffer a hardship which is inequitable or unfair if they pay their outstanding tax debt, the IRS may accept an OIC offer. This condition is used mainly for the elderly or the handicapped.

Rejection of Offer in Compromise in Rhode Island

The IRS not only has authority to collect federal tax debt, but they may also decide how much they are willing to accept to settle outstanding IRS tax debt. The IRS has the ability to accept or deny all OIC offers and the Rhode Island taxpayer will not have any legal authority to compel the IRS to accept an offer through lawsuits or any other legal means.

If the Internal Revenue Service denies an Offer in Compromise, they are required to send a written notice to the Rhode Island taxpayer outlining the reasons for the OIC denial. Most OIC offers are denied because the IRS has determined the offer is too low. If this is the reason, the IRS should be able to provide a counter offer to the taxpayer which the government thinks is reasonable. All information which is not provided by the IRS to the taxpayer may be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Rhode Island

The first step in the negotiation process if the OIC is denied is to contact the IRS and try to speak with the IRS agent who reviewed the first OIC offer. If the IRS administrator is not willing to negotiate, the taxpayer has 30 days from the date of the OIC denial letter to file a formal OIC appeal.

The Offer in Compromise letter should contain the following information:

  • The Rhode Island taxpayer’s name, address, social security number and telephone number.
  • The reason the Rhode Island taxpayer is appealing the Offer in Compromise denial.
  • All changes the Rhode Island taxpayer would like made.
  • Documentation outlining the tax periods or years in question.
  • Federal tax law information which may support the Rhode Island taxpayer’s position.
  • The Rhode Island taxpayer must sign the Offer in Compromise letter under penalty of perjury.

All Offer in Compromise appeals and negotiations can be done with out the assistance of a tax professional, but many Rhode Island taxpayers will need help. Rhode Island taxpayers who seek tax assistance should contact a tax professional who is either a tax attorney, a certified public accountant or an enrolled agent.

Completing an Offer in Compromise

Rhode Island taxpayers will need to complete the following tasks:

  • Rhode Island taxpayers must complete their Offer in Compromise forms and send them to the IRS.
  • Rhode Island taxpayers must send their IRS tax information to the IRS.
  • Rhode Island taxpayers must complete the federal tax returns and send them to the Internal Revenue Service before the tax deadline for the next five years.
  • All self-employed Rhode Island taxpayers must mail their federal tax returns and pay their estimated IRS taxes each quarter.
  • All IRS taxes must be paid by Rhode Island taxpayers for the next 5 years.
  • All OIC requirements must be completed by the Rhode Island taxpayer.
  • Federal tax refunds from the IRS will be paid toward the Rhode Island taxpayer’s tax debt for the calendar year that the Offer in Compromise is accepted.

The Offer in Compromise can be cancelled if the Rhode Island taxpayer fails to complete all of the required tasks. The IRS can also reinstate the full amount of the taxpayer’s tax debt.

Offer in Compromise Forms

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