Offer In Compromise

Stanley---You may know this already, but on the IRS phone line they have all kinds of topics you can listen to. I don't know if your question would be on there. I do know that you can call during certain hours and ask questions too.

I would also go to http://www.irs.gov/, their website, and do a search on forms. It should be right there, ready for downloading!

This morning I will be making a call to the IRS, currently i owe them roughly $4000.00. What exactly is a Offer in Compromise? I know a little which is that you can pay pennies on the dollar owed, and that if the IRS agrees to it, that it must be paid in full. Would it be best to fill out this form and send it in just to see what the amount owed would end of being, and if it were to high for me to pay in full, then just set up arrangements for the total $4000.00? What Would You Do?

i just printed out my offer in compromise for the irs.gov wholly cow 66 pages...anyhow just scanning thru this mound and i see that there is a payment arrangement option for a 24 month period....what i also noticed is there is a $150.00 application fee. and if my offer is accepted i will need to pay 20% of the offer immediately. I need a secretary.......

Didn't you say in a prior post that you're getting a $1000 refund?? So that knocks it down to $3000 which is better! If you call the IRS, I'd casually mention that to them and see what they say...

Yes, Lorri I know about the help line, thanks for making me aware of it.

I think the amount offered should be equal to or greater than the "reasonable collection potential", the amount that IRS thinks you can pay in 24 months.

candiceann2003, on which basis you are going for the OIC? There are 3 points for OIC I think:

• Doubt as to Liability
  
• Doubt as to Collectibility
  
• Effective Tax Administration