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Michigan Department of Treasury 5500 (1016) Reset Form Offer in Compromise Checklist (DOUBT AS TO COLLECTIVITY BUSINESS) Failure to include ALL requested documents may result in your offer being rejected
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How to fill out 5500 offer in compromise

01
Step 1: Gather all necessary financial information, including details about your income, expenses, assets, and liabilities.
02
Step 2: Download Form 5500 Offer in Compromise from the official IRS website or obtain it from a local IRS office.
03
Step 3: Carefully read the instructions provided with the form to understand the eligibility requirements and how to accurately fill it out.
04
Step 4: Complete the personal information section of the form, including your name, contact details, and social security number.
05
Step 5: Fill out the financial information section, providing accurate details about your income, expenses, assets, and liabilities.
06
Step 6: Calculate the value of your offer in compromise by following the instructions provided with the form.
07
Step 7: Attach all necessary supporting documents, such as pay stubs, bank statements, and tax returns, to validate the information provided.
08
Step 8: Review the completed form and attached documents to ensure accuracy and consistency.
09
Step 9: Sign and date the form, certifying that the information provided is true and accurate to the best of your knowledge.
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Step 10: Submit the filled-out Form 5500 Offer in Compromise and supporting documents to the IRS according to the instructions provided.

Who needs 5500 offer in compromise?

01
Individuals who owe a significant amount of tax debt to the IRS and are unable to pay it off in full.
02
Taxpayers who have experienced financial hardship or undergone a substantial change in their financial situation.
03
Those who believe their tax liability is incorrect or unfair and want to negotiate a lower amount.
04
Businesses or corporations facing financial difficulties and unable to meet their tax obligations.
05
Taxpayers who qualify for specific IRS programs aimed at providing relief for outstanding tax debt.
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A 5500 offer in compromise is a proposal made by a taxpayer to the IRS to settle their tax debt for less than the full amount owed.
Taxpayers who are unable to pay their full tax debt and meet certain criteria may be required to file a 5500 offer in compromise.
To fill out a 5500 offer in compromise, taxpayers must complete and submit IRS Form 656, along with supporting documentation and a non-refundable application fee.
The purpose of a 5500 offer in compromise is to give taxpayers who are financially unable to pay their full tax debt the opportunity to settle for a lesser amount and resolve their tax liability.
Taxpayers must provide detailed financial information, including income, expenses, assets, and liabilities, as well as supporting documentation, when filing a 5500 offer in compromise.
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