Can you file a second Offer in Compromise after one is rejected?

You can certainly file a second Offer after one is rejected, but only when there is a change in your circumstances, e.g. lower income or higher necessary living expenses or even loss of assets through no fault of your own.   However, you must have some source of income for any Offer to be considered. This can be unemployment income in certain cases, odd jobs on a continuing basis or similar forms of income. If you have no source of income and are depending on someone else to exist, the IRS assumes that you will gain employment at some time in the future and you must wait until that time to file your Offer. The exceptions are married couples where only one spouse works and people on disability (an accepted form of income). In next week’s blog I’ll discuss an alternate way we might proceed after an initial rejection.