Your back taxes, interest and penalties can be wiped out by filing with an Offer in Compromise. If
you qualify, bankruptcy can be the best solution to resolve your crushing tax problems.
An Offer in Compromise
OIC Process
There is a $150 application fee for filing
an OIC, which you must attach to Form 656. You might be exempt from the fee if
your monthly income is below the poverty guidelines. If you claim the poverty
guideline exemption, you must submit an Application Fee Worksheet from the Form
656 booklet.
In addition to Form 656, you must submit a Collection
Information Statement, or Form 433-A. If you are married and live in a
community property state, the IRS may request that your Collection
Information Statement include data on your spouse -- even if you alone owe
the IRS. Take particular care in filling in this form correctly if you are
serious about your OIC. The IRS scrutinizes the disclosures you make in this
form much more closely when considering an OIC than when you request to pay
your taxes with an installment agreement.
Completing the forms is just the beginning.
After you submit the forms, the IRS will ask you for rafts of financial
documentation -- pay stubs, bank records, vehicle registrations, and myriad
other items. This is an exhaustive, time-consuming process. Some taxpayers wind
up submitting box loads of documents to the IRS to support their OIC request.
Unfortunately, not everyone qualifies to wipe out their tax debt in an Offer of Compromise. Certain rules have to be met
first. If you file an Offer of Compromise and don't meet the rules, the IRS will still be in hot pursuit after your bankruptcy is over. Call us today if you owe more than $15,000 in IRS debt, we can help to pay less than you owe.
