What makes an Offer in Compromise Not Processible?

Many times when a taxpayer attempts to submit an Offer in Compromise without professional help it is returned as non-processible.  “Not processible” means that the taxpayer failed to fulfill at least one of

 

 

the many technical requirements to be met when filing an Offer, e.g. one is putting the taxpayer’s initials and date in the bottom right corner on every page of the Offer.   Another example is making sure each period for which a tax is owed is stated on the Offer and that there is no mixture of single taxpayer liability and joint taxpayer liability.  The Offer examiners have a directive from the top that they are to return as many Offers as they can without looking at them on their merits.  This is because there are so may Offers filed each year.  In fact over the past few years, the number returned as Not Processible” has increased dramatically. During the same period, the number of Offers accepted declined! Thus it has become almost impossible for an individual to get an Offer accepted without professional help.  If you make the tiniest mistake, your Offer is “shot down.”