Offer In Compromise - Doubt As To Collectibility

(I Can't Ever Pay It!)

To qualify for this type Offer in Compromise, the value of the equity in your assets plus your "excess" income over the next 48 or 60 months, must be less than the taxes owed. There is no magic percentage of the tax owed to offer, it is based entirely on your ability to pay.

An Offer in Compromise is filed on a Form 656. On this form you indicate what years you want to compromise, what tax you are compromising, how much you are offering, how you will fund the Offer and the reason you are making the Offer (don't owe or can't pay). Except under certain circumstances, you will be required to pay 20% of the amount offered with the Offer or you will be required to make payments while the Offer is pending. These amounts are NOT refundable.

If the reason you are making an Offer in Compromise is because you cannot ever pay all you owe (Doubt as to Collectibility), then you will also be required to complete Form 433-A, and a 433-B,  if you are self-employed. The purpose of Forms 433-A and 433-B is to identify all the assets and income you have available to pay the tax. How these forms are filled out is critical. Do not try them yourself! They can make or break an Offer in Compromise.

Important Note: The Offer in Compromise program is not being done away with as some other firms might suggest. However, the present mind-set of the IRS is definitely "Anti-Offer". They are getting harder and harder to get approved. I recommend that you do not attempt an Offer in Compromise without professional assistance. We would be pleased to assist you. Contact us today to learn more.

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