Before the IRS will consider an offer, you must make all required estimated tax payments for the current year, and if you are a business owner with employees, make all required federal tax deposits for the current quarter and the two preceding quarters.
Taxpayers in an open bankruptcy proceeding aren’t eligible to enter into an OIC.
Use the IRS Offer in Compromise Pre-Qualifier Tool to see if you may be eligible to make an offer. This tool is only a guide and does not guarantee acceptance of your offer. You can still discuss questions you have about filing an offer by contacting the IRS.
If you submit an offer, you will be required to pay a filing fee and initial payment unless you meet low-income waiver criteria. You will also be required to provide a complete financial statement showing all your assets and income. The IRS will generally keep any payments made toward the offer (even if your offer is not accepted) and you must remain current with all tax filing and payment obligations throughout the offer process. If your offer is accepted, the IRS will keep any refund you are owed for tax returns filed through the date the IRS accepts your offer.
Submitting an offer will extend the time period the IRS has to collect your tax debt. You can read more about the offer process and find frequently asked questions here.