Tax Debt Solutions Blog

Tax Relief: Your Offer In Compromise Questions Answered

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Ways to Avoid Mistakes with IRS OIC Forms:

• Use most current forms to fill in marital status, spouse tax liability, social security number and employer ID.

• Fill in two individual forms if you owe business and personal tax; divide tax type and periods.

• Forms with deletions of preprinted items or alterations will not be processed.

• If both spouses submit an offer, both must sign.

If you made mistakes on your forms, you may resubmit; but it will delay the process by weeks or months.

How Much You Must Pay?

Lump sum offers are made up of five payments or less.  A twenty percent deposit is necessary with your first offer forms.

Installment payment offers are in excess of five payments.   Your first forms must be submitted with one full monthly payment and then every month until your tax bill is settled.

A $150 application fee is required if there is no incomplete payment accompanying your offer beneath the lump sum or installment rules.  It can be put aside if you can’t afford the fee.  Submit an Application Fee Worksheet in Form 656 booklet.  Make check or money order payments to ‘United States Treasury’.