Official IRS (OIC) Acceptance Letters
Real Tax Law Center Results From the Past 20 Years
What is an Offer in Compromise (OIC)
An Offer in Compromise (OIC) is an agreement between the taxpayer and the Internal Revenue Service that settles the taxpayer’s financial liabilities for less than the full amount owed. Taxpayers who have the ability to fully pay the liabilities through an installment agreement or other means, may not qualify for an OIC, so call the tax professionals Tax Law Center to analyze if this is a viable option for you.
1. You must be current with all required tax returns being filed – All required tax returns must be filed with the IRS before they will review your application for OIC.
2. You cannot be a party to an active bankruptcy – if you are a party to an active bankruptcy the IRS will not review your application for OIC.
3. Must be current on payment requirements – If you are filing an OIC as a self-employed individual or business, you must be current on all estimated tax payments. Failure to pay your estimated tax payments will result in the IRS rejecting your OIC immediately. This includes payments of your quarterly payroll taxes if you are a business owner.
What are the requirements for filing an oic?
after my oic is accepted
Once your OIC is accepted, to stay in good-standing with the IRS, you must file and pay all required tax returns when they are due for the next five-years and not have any new balances. Even an Audit of these returns can trigger an issue if the audit results in taxes owed and cannot be paid. If taxes are owed during this five-year period, all settled balances from the OIC will be reinstated with the IRS and collections can resume.