Choose Your Weapon...
So you've decided that you're going to submit an Offer in Compromise to the IRS.
That's great! Now the problem is that you really aren't sure what the IRS expects from you.
You're not sure what to submit.
If you know the answers to these simple questions, you can greatly reduce your chance of being denied an OIC: Study, Study, Study - If you decide to go with the Offer in Compromise program, you've got quite a bit of homework to do.
First of all, you need to make sure you are up to date with all of your filings.
If for any reason you missed any years, you need to get the properly filed as soon as possible.
If you have unfiled returns, the IRS won't even process your request.
You can get a transcript from the IRS to make sure you are up to date.
Required Forms - The Offer program requires forms 656 and 433A.
Remember, not only do you need these forms but you need any information accompanying these forms.
If the supporting documents are not included in the submission, consider you offer rejected and you can come up with another way to resolve your issue.
Financial Disclosure: These are the things the IRS will be expecting you to submit with you Offer in Compromise.
You must submit the following, or be rejected:
But make sure the forms are filled out correctly.
I personally threw out several OIC cases just because the paperwork wasn't filled out correctly.
IRS-Hitmen won't waste their time reviewing a submission that's been filled out correctly.
Now you have the smoking gun...
Use it!
So you've decided that you're going to submit an Offer in Compromise to the IRS.
That's great! Now the problem is that you really aren't sure what the IRS expects from you.
You're not sure what to submit.
If you know the answers to these simple questions, you can greatly reduce your chance of being denied an OIC: Study, Study, Study - If you decide to go with the Offer in Compromise program, you've got quite a bit of homework to do.
First of all, you need to make sure you are up to date with all of your filings.
If for any reason you missed any years, you need to get the properly filed as soon as possible.
If you have unfiled returns, the IRS won't even process your request.
You can get a transcript from the IRS to make sure you are up to date.
Required Forms - The Offer program requires forms 656 and 433A.
Remember, not only do you need these forms but you need any information accompanying these forms.
If the supporting documents are not included in the submission, consider you offer rejected and you can come up with another way to resolve your issue.
Financial Disclosure: These are the things the IRS will be expecting you to submit with you Offer in Compromise.
You must submit the following, or be rejected:
- Proof of income and deductions from the past three to six months.
This includes any other forms of income: pension, social security, gambling winnings. - Proof of is all assets such as cars, your home, and any other property that you might own.
They want to know how much you pay on these items monthly, as well as how much your assets would sell for if they were sold today. - Proof of how much you pay in monthly bills.
This includes rent, utilities, medical bills, etc. - The IRS will also review your tax returns from the last three years.
But make sure the forms are filled out correctly.
I personally threw out several OIC cases just because the paperwork wasn't filled out correctly.
IRS-Hitmen won't waste their time reviewing a submission that's been filled out correctly.
Now you have the smoking gun...
Use it!
Source...