The offer in compromise is a type of IRS program that is designed to help people that have IRS debt to settle. Here, the amount that they return will be comparatively lesser than what they actually owe. The taxpayers that are willing to take up this offer should meet certain criterion as set by the IRS applications, and the ones that don’t might get their application rejected.
Applying for this IRS Offer in Compromise
Those who are willing to apply to this IRS form offer in compromise should follow three basic criteria, which are listed below.
- Completed IRS 656 and 433-A forms. If you feel like you are not owed the amount as it is displayed in the list, then you can just go with the idea of filling out the 656-L form.
- While filling out the form, an amount of $205 should be paid from your end. This amount is non-refundable and can be waived off, only when you meet all the low-income guidelines as set by you.
- The final step will be the payment as per the amount that you owe in the balance due.
While applying for this offer, you are required to provide much information such as your assets, monthly income, the other debts that you owe, and so on. Here, you need to provide some additional information such as your monthly grocery requirement, your utility bills, and all the other expenses.
Many factors will be taken into consideration while approving your IRS compromise forms. If the concerned authority feels like your application is not up to the expectations, then your form will be automatically rejected. Hence, make sure that you understand all such requirements and fulfill all the needs from your end.
Your form will be disapproved even if you forget to add the $205 payment while filling out the form. Hence, make sure that every criterion is met.