A blog post

OFFER IN COMPROMISE – NEW IRS TOOL

Posted on the 14 February, 2013 at 1:20 pm Written by in Taxes

The IRS has a new tool to see if you may be eligible for an offer in compromise.

http://irs.treasury.gov/oic_pre_qualifier/

 An offer in compromise (offer) is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. The offer program provides eligible taxpayers with a path toward paying off their debt and getting a “fresh start.” The ultimate goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, generally you must make an appropriate offer based on what the IRS considers your true ability to pay.

Go to web site and enter our financial and tax filing status to calculate a preliminary offer amount. They make their final decision based on your completed OIC application and their  associated investigation. This tool should only be used as a guide. Although it may show you can full pay your liability, you may still file an offer in compromise and discuss your individual financial situation with the IRS.

Submitting an offer application does not ensure that the IRS will accept your offer. It begins a process of evaluation and verification by the IRS, taking into consideration any special circumstances that might affect your ability to pay. Generally, the IRS will not accept an offer if you can pay your tax debt in full via an installment agreement or a lump sum.
A booklet is also available and will lead you through a series of steps to help you calculate an appropriate offer based on your assets, income, expenses, and future earning potential. The application requires you to describe your financial situation in detail, so before you begin, make sure you have the necessary information and documentation.

http://irs.treasury.gov/oic_pre_qualifier/