Frequently Asked Tax Questions And Answers
Keyword: bill/debt/liability/agreement/paymentagreement/ owe tax payment/ tax bill/ oic/ offer in compromise
1.5 IRS Procedures: Collection Procedural Questions
What are the requirements for an OIC?
In order to be considered for an OIC, a taxpayer must meet all of the following
requirements:
Used the most current versions of Form 656, "Offer in Compromise," and
Forms 433-A and 433-B, "Collection Information Statements." The most current
versions are dated May 2001;
Submitted the $150 application fee, or Form 656-A, "Income Certification
for Offer in Compromise Application Fee," with the Form 656 (effective 11/01/03);
Filed all required federal tax returns;
Filed and paid any required employment tax returns on time for the two
quarters prior to filing the OIC, and is current with deposits for the quarter
in which the offer in compromise was submitted; and
is not a debtor in a bankruptcy case.
Taxpayers must comply with all federal tax filing and paying requirements
for a period of five years following acceptance of their OIC, or until the
OIC is paid in full, whichever is longer. This also includes making required
estimated tax payments and federal tax deposits.
For additional topics onOffer in Compromise see Offer
in Compromise.
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