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Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms.

Apply any offer payment you included to your balance dueįind forms to submit an application and step-by-step instructions in Form 656-B, Offer in Compromise Booklet PDF.

Return your application and offer application fee.

If you apply for an Offer in Compromise and we can’t process your offer, we'll:

Are an employer and made tax deposits for the current and past 2 quarters before you apply.

Have a valid extension for a current year return (if applying for the current year).

Aren't in an open bankruptcy proceeding.

Filed all required tax returns and made all required estimated payments.

You're eligible to apply for an Offer in Compromise if you: Who Is EligibleĬonfirm you're eligible and prepare a preliminary proposal with the Offer in Compromise Pre-Qualifier Tool.

If you hire a tax professional to help you file an offer, be sure to check his or her qualifications. The Offer in Compromise program is not for everyone. Explore all other payment options before you submit an offer in compromise.

We generally approve an offer in compromise when the amount you offer represents the most we can expect to collect within a reasonable period of time. We consider your unique set of facts and circumstances: It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship.

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