Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Before you file an Offer in Compromise, you should first file the unfiled year and the current year. No offer is acceptable unless all tax returns have been filed. Also, OICs are only valid if you continue to file your taxes timely, so if you are generally non-compliant then the OIC is not for you. Finally, there are filing fees to do these OICs, a very detailed personal balance sheet must be submitted and check for some of the taxes due. All are non-refundable. So first get your returns filed, determine how much you owe, and while waiting for the IRS to contact you for the balance due, save as much money as you can. Then retain a tax attorney to help you negotiate a payment plan instead of an OIC.
Answer Applies to: Pennsylvania
The McKellar Law Firm, PLLC | Norman McKellar
Yes, the Offer in Compromise program does really work for those who qualify for the program. One of the qualifications for acceptance of your Offer in Compromise is that you have filed all past due tax returns. If you have not filed all due past due tax returns, the IRS will not even consider your request to compromise your tax debt for less than you owe. Accordingly, it is in your best interest to file your past due tax return(s) and consult with an experienced tax attorney before submitting your Offer in Compromise application.
Answer Applies to: Tennessee