Required Documents For Offer In Compromise

The Offer In Compromise program is a voluntary program that is offered to taxpayers who are delinquent in their taxes.  There are several types of Offer, namely OIC based on doubt as to collectibility, OIC based on doubt as to collectibility with special circumstances, OIC based on doubt as

 

 

to liability and OIC based on Effective Tax Administration.  Not everyone qualifies, but if you think you do and want to make an Offer you must disclose some private information to the IRS.  I will first discuss the Offer based on doubt as to collectibility.  You must submit the official OIC form completely filled out and signed; a completed Financial Information Statement, both individual and business (if applicable); and financial documents to verify the information on the financial information form.  Examples of documents are paystubs with year-to-date figures, bank statements, mortgage payment notices, utility bills, doctor bills, car payments, etc. You generally have to submit three months worth of these documents.  If you are not willing to collect and submit these documents to the IRS, you cannot submit an Offer.  There are certain other criteria for submitting an Offer that I will discuss in my next blog.