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Offer in Compromise Eligibility

Can I File Offer in Compromise?

In order to begin the offer in compromise process, you will need to start with just 3 questions:

  1. Do you have an open bankruptcy proceeding? -

    You should contact your Bankruptcy Attorney if you are not certain. Any resolution of your outstanding tax liabilities generally must take place within the context of your bankruptcy proceeding.

  2. Do you have any unfiled federal tax returns that you are required to file? - You must file all tax returns that you are legally required to file, prior to submitting an offer in compromise to the IRS.
  3. Returns that must be filed can include (but are not limited to):

    • All Income Tax returns
    • Employment Tax returns
    • Excise Tax returns
    • Partnership Tax returns
    • Limited Liability Corporate returns
    • Closely held Sub-Chapter S Corporation returns

    If you were not legally required to file a return prior to submitting your OIC, you must include a detailed explanation of the circumstances.

  4. Do you own a business with employees and have you failed to timely make any required federal tax deposits?

If you answered yes to any of the questions above, you are not eligible to have your offer considered or processed at this time. If you answered no to all of the questions above, then you may be eligible to have your offer considered and processed.