What are the requirements for an OFFER IN COMPROMISE?
In order to be considered for an OFFER IN COMPROMISE, a taxpayer must meet all of the following requirements: • Used the most current versions of Form 656, “Offer in Compromise,” and Forms 433-A and 433-B, “Collection Information Statements” The most current versions are dated May 2001; • Submitted the 0 application fee, or Form 656-A, “Income Certification for Offer in Compromise Application Fee,” with the Form 656; • Filed all required federal tax returns; • Filed and paid any required employment tax returns on time for the two quarters prior to filing the OFFER IN COMPROMISE, and is current with deposits for the quarter in which the offer in compromise was submitted; • Is not a debtor in a bankruptcy case. Taxpayers must comply with all federal tax filing and paying requirements for a period of five years following acceptance of their OFFER IN COMPROMISE, or until the OFFER IN COMPROMISE is paid in full, whichever is longer. This also includes making required estimated tax payments
For an offer to be accepted, a taxpayer must meet all of the following requirements: Used the most current versions of IRS Form 656 — Offer in Compromise, and Forms 433-A and/or 433-B Collection Information Statement as applicable. (The Form 656 was revised by the IRS in October 2004.) Submit the $150 application fee, or if warranted an executed Form 656-A — Income Certification for Offer in Compromise Application Fee seeking a waiver of the fee. File all required federal tax returns. File and pay any required employment tax returns on time for the two quarters prior to filing the offer in compromise, and demonstrate current compliance with the requirement to make tax deposits for the quarter in which the offer in compromise was submitted. The IRS will not consider an offer in compromise from a taxpayer who is in bankruptcy or who is involved in litigation with the IRS, even as a partner in a partnership. The taxpayer must comply with all federal tax filing and paying requirements fo
In order to be considered for an OFFER IN COMPROMISE, a taxpayer must meet all of the following requirements: • Used the most current versions of Form 656, “Offer in Compromise,” and Forms 433-A and 433-B, “Collection Information Statements” . The most current versions are dated May 2001; • Submitted the $150 application fee, or Form 656-A, “Income Certification for Offer in Compromise Application Fee,” with the Form 656; • Filed all required federal tax returns; • Filed and paid any required employment tax returns on time for the two quarters prior to filing the OFFER IN COMPROMISE, and is current with deposits for the quarter in which the offer in compromise was submitted; and • Is not a debtor in a bankruptcy case. Taxpayers must comply with all federal tax filing and paying requirements for a period of five years following acceptance of their OFFER IN COMPROMISE, or until the OFFER IN COMPROMISE is paid in full, whichever is longer. This also includes making required estimated tax
