Why Are Offers in Compromise Returned?

An Offer may be returned without consideration for several technical reasons. This is not considered a denial. When an Offer is first received, it must pass several tests to be considered. If it fails these technical requirements, it will be returned without even being considered. Some of these requirements are: you must sign the Offer; you must initial every page of the Offer and you must submit financial information with the Offer. Also, you must have filed at least the prior six years’ tax returns. You don’t have to have paid the tax owed, but you must file. In addition, if you owed more than approximately $1,000 when you sent in the past year’s return, you must make estimated tax payments for the current year. Failing to do so also results in the Offer being returned. If you do not do all of these things and your Offer is returned, you can correct and then resubmit the Offer for consideration. I should note that you must also remain current in filing and paying while the Offer is being considered and for at least five years after the Offer is accepted.