Get the free Offer in Compromise - Georgia Department of Revenue - etax dor ga

Note: If you need more space, use a separate sheet of paper and title it Attachment to Form OIC-1. Sign and date the attachment following the listing of ...

How to fill out offer in compromise

How to fill out offer in compromise:

1. Gather all necessary documents - Before starting the offer in compromise process, gather all relevant financial documents such as tax returns, income statements, assets, and liabilities statements.
2. Determine your eligibility - Review the eligibility criteria set by the Internal Revenue Service (IRS) to see if you qualify for an offer in compromise. This includes owing back taxes, inability to pay the full amount, and compliance with all filing and payment requirements.
3. Complete the necessary forms - Fill out Form 656, Offer in Compromise, and Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B (OIC), Collection Information Statement for Businesses, depending on your circumstances.
4. Provide accurate financial information - Be meticulous when providing financial information on the forms. Any discrepancies or inconsistencies may lead to delays or rejection of your offer in compromise.
5. Determine your offer amount - Calculate your offer amount by considering your reasonable collection potential (RCP), which takes into account your assets, income, and expenses. Use the IRS guidelines or consult a tax professional if needed.
6. Make the required payment - Include the initial payment with your offer in compromise application. The payment amount depends on the payment option you choose, either a lump sum or periodic payment plan.
7. Submit the application - Mail your completed offer in compromise application along with all supporting documentation to the appropriate IRS address specified in the instructions.
8. Await IRS response - It typically takes several months for the IRS to review and make a decision on your offer in compromise. Have patience and be prepared to provide any additional information or negotiate if needed.

Who needs an offer in compromise?

1. Individuals with significant tax debt - Individuals who owe a substantial amount of tax debt that they are unable to pay off in full may require an offer in compromise to settle the debt.
2. Small business owners - Business owners who are facing financial difficulties and are unable to meet their tax obligations may find an offer in compromise as a viable solution to resolve their tax debt burdens.
3. Self-employed individuals - Self-employed individuals who have incurred significant tax debt or have experienced a downturn in their business may benefit from pursuing an offer in compromise to settle their tax liabilities.
4. Taxpayers experiencing financial hardships - Individuals or families facing challenging financial circumstances such as unemployment, medical expenses, or other unexpected downturns may be eligible for an offer in compromise if they are unable to pay their tax debt.

For pdfFiller’s FAQs

What is offer in compromise?

An offer in compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed.

Who is required to file offer in compromise?

Taxpayers who are unable to pay their full tax debt or for whom paying the full amount would create financial hardship may be eligible to file an offer in compromise.

How to fill out offer in compromise?

To fill out an offer in compromise, taxpayers must complete IRS Form 656 and provide detailed information about their financial situation.

What is the purpose of offer in compromise?

The purpose of an offer in compromise is to help taxpayers resolve their tax debt and make a fresh start financially.

What information must be reported on offer in compromise?

Taxpayers must report information about their income, expenses, assets, and liabilities on an offer in compromise.

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