The IRS Offers in Compromise program is a debt forgiveness initiative, allowing you to settle your tax debt for less than you owe and providing a fresh start. It, however, demands careful attention to detail and compliance with IRS guidelines. Due to the intricacies involved, seeking the assistance of a qualified tax attorney or tax lawyer who specializes in IRS debt relief programs is often beneficial. They can provide invaluable guidance and increase your chances of a successful OIC application. Continue reading as we provide a comprehensive checklist for the IRS Offers in Compromise application to help you get the desired tax debt resolution.
1. Collect All Your Personal Information
To begin the IRS Offers in Compromise process, taxpayers need to determine how much to offer in compromise to the IRS. To do this, they are required to collect all their personal information, including cash, investments, available credit, assets, income, and debt. Additionally, they should gather data on their household’s average gross monthly income and expenses. Having these details readily available will streamline the process of filling out the necessary forms.
2. Fill out Form 433-A
Form 433-A, the Collection Information Statement for Wage Earners and Self-Employed Individuals, is a crucial document in the OIC application. This form requires you to disclose your financial situation, including income, expenses, and assets. Be honest and thorough when completing it.
3. Fill out Form 433-B
For businesses, Form 433-B, the Collection Information Statement for Businesses, is the equivalent of Form 433-A. It assesses the financial status of your business, including income, expenses, and assets. Provide accurate and complete information to avoid delays.
4. Attach Supporting Documents with the Form
Support your application with relevant documents, such as bank statements, pay stubs, and tax returns. These documents substantiate the information provided on Forms 433-A and 433-B, reinforcing the credibility of your application.
5. Fill out Form 656
Form 656, the Offer in Compromise form, is the heart of your application. Here, you’ll specify the amount you are offering to settle your tax debt. Use the knowledge you’ve gathered about your financial situation to make a reasonable offer.
6. Include Initial Payment and Application Fee
To proceed with your OIC application, include an initial payment with Form 656. This payment demonstrates your commitment and may vary based on your financial situation. Additionally, remember to pay the application fee, unless you qualify for a waiver.
7. Mail the Application to the IRS
Double-check that you’ve completed all forms accurately, attached the necessary documents, included the initial payment, and paid the application fee. Once you’re confident, send your application to the IRS at the address provided in the instructions.
It’s important to note that the acceptance of your OIC application by the IRS is not guaranteed. Get the guidance you deserve by partnering with the Law Offices of Nick Nemeth. As one of the experienced IRS tax firms in Dallas, TX, we offer comprehensive solutions for the IRS settlement program. Our services range from helping you determine your eligibility for tax relief provisions to preparing a solid case on your behalf and representing you at hearings. Partnering with our seasoned professionals can provide you with confidence in your acceptance. To discuss your requirements, please call (972) 484-0829.