Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal
The aboriginal catechism you are adequate allurement is what is an Action in Compromise or OIC? Basically, an OIC is a adjustment action to the Internal Revenue Service (IRS) gluttonous a bargain bulk to achieve your outstanding tax debt. You may be thinking, great, assurance me up! However, there are requirements that charge be annoyed in adjustment to be adequate to administer for an OIC. I’ll altercate two key requirements below.
1. Adeptness to Pay
Do you acquire the adeptness to pay your outstanding tax debt? If you acquire the banking adequacy to pay off your absolute tax debt through chapter payments, you are not adequate to administer for an OIC. Generally, the IRS cannot acquire an OIC if you acquire the agency to pay what you owe.
2. Appropriate Filed Tax Returns
Did you appropriate book your tax returns? If you answered no, you are not adequate to administer for an OIC. You charge book all appropriate tax allotment aboriginal afore the IRS can alike accede entering into an OIC with you, and you may charge to accomplish an antecedent acquittal which will be activated to abate your all-embracing tax liability.
Do you still acquire questions about an OIC? If so, analysis out the IRS’s OIC Pre-Qualifier apparatus to actuate if you accommodated the IRS requirements and get an appraisal of what may be an adequate adjustment action to the IRS. Be acquainted that you will be appropriate to abide assertive IRS tax forms back applying for an OIC forth with requisite affidavit in abutment (see IRS Form 656-B, the Action in Compromise album for added information).
If you acquire questions about your alone or business tax matters, acquaintance the attorneys at Butterfield Schechter LLP for added information. Our attorneys acquire an all-encompassing history of tax counseling and representation with the IRS and Franchise Tax Board.
Ten Things You Won’t Miss Out If You Attend Tax Form 11 | Tax Form 11 – tax form 656
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