How is the application fee, or the 20% lump sum deposit amount or the periodic payment amount, collected?
The application fee, or the 20% lump sum deposit amount or the periodic payment amount, is collected when a taxpayer submits an Offer In Compromise. The general rule is that the IRS needs as many Offer In Compromises as there are entities seeking to compromise. A check or money order in the amount of $150 and the 20% deposit amount and/or the periodic payment amount, must be attached to each Offer In Compromise. This assumes that the taxpayer does not meet one of the exceptions for paying the application fee: The Offer In Compromise is filed solely under doubt as to liability. The Taxpayers total monthly income falls at or below income levels based on the DHSS poverty guideline levels.
Related Questions
- Will the application fee, or the 20% lump sum deposit or the periodic payment amount create an additional financial hardship on taxpayers who are already having payment problems?
- What happens if I submit an application fee, or lump-sum deposit payment or periodic payment, and find that I have insufficient funds in my account to cover the check?
- How is the application fee, or the 20% lump sum deposit amount or the periodic payment amount, collected?
