When to submit a second Offer in Compromise

One can submit more than one Offer in Compromise for consideration by the IRS. There is no minimum wait time between Offer submissions. Why would one want to do that? The primary reason to submit another Offer is when the taxpayer’s circumstances have changed for the worse, usually due to a loss of assets or reduced earnings power. Another reason is if the taxpayer prepared the first Offer himself, he probably missed many deductions and other chances to lower the Offer that a professional knows about. Finally, the third and best reason to file a second Offer is that the new, revised Offer program is much more “friendly” to the taxpayer. For example, what the IRS calls “dissipated assets” are treated differently now. Also, if one has disposable income left over each month, much less has to be included in the Offer than before. Thus, there is no better time to pursue an Offer than now, whether it is the first, second or fifth!