Errors to Avoid in the IRS Offer in Compromise Program

Getting an Offer in Compromise accepted is not an automatic process. It is quite difficult but if done properly, your offer may get qualified for approval. 

Even if you are qualified to apply for an Offer in Compromise, there is no guarantee that your Offer will be approved. You should stay away from tax firms that guarantee your OIC acceptance because they are not working to your best interests. Our law firm won't guarantee that to our valued clients because we can’t guarantee.  However, in the following paragraphs, I will tell about what you can do to increase the likelihood of getting your OIC accepted. Yes, it can achieved.

• Are you current? If self employed, did you completed making payment on the latest estimated quarterly tax? If you are a W-2 employee, is the withholding correct? If not, the government will simply reject your OIC as you've not complied with the tax rules.

• You should have filed all past income tax returns. If you are not going to stay complaint with all the tax rules, then how can you expect that the IRS will accept your offer without having second thoughts? Tax compliance would mean that you need to meet your tax payments completely and also you should prove that you submitted your returns timely by showing the relevant documents.

• You need to send all of the supporting documents to validate the case. Always handle the IRS representatives politely because shouting at them or getting emotional will not going to help you by anyway.

• There is a user fee and when not enclosed, your offer will be rejected. In case you are requesting a low-income fee waiver, have you submitted the form 656-A?

• Are you a good taxpayer? Individuals who are intentionally cheating the IRS do have a reason to be worried. Once they feel you're being less than truthful, you can forget about getting your Offer approved. When the taxpayer lies to the IRS and submit false documents, the IRS may use to obtain a felony conviction against them.

Do you think you're being courteous and well-mannered to the IRS Offer in Compromise Examiner? Never make matters worse by dealing with IRS examiner in a rude manner. They can make your life miserable. Make sure that you show respect to them while maintaining polite and professional. It isn't something you look forward to, but you will do far better if you address the examiner with respect and in professional manner. But try not to go overboard. Stick to polite, courteous and professional. Whenever they make inquiries, answer directly and to the point. If you can't give proper reply, the chance of your Offer in Compromise getting rejected will undoubtedly get higher and higher.