It’s crucial to keep in mind that this situation is only temporary and the income of the taxpayer will constantly be examined to make sure they can still not afford to pay their tax burden. IRS form 656 must be submitted as the initial step in obtaining an OIC. The application must be submitted for a charge of $186. If you are below the poverty line, you can avoid paying the cost, but you must complete the Application Fee Worksheet from the form 656 booklet.
Second, you must submit Form 433-A for individuals and Form 433-B for enterprises to the IRS in order to give them a financial summary. If you’re married, the IRS will need a Collection Information Statement to get details on your spouse. It’s crucial that you take your time filling out this form because the IRS will diligently verify the data. Knowing about the author will help you to understand the need of experts in such scenario.
It takes a long time to get approved. The OIC is not something that the IRS would just hand out to anyone. Several considerations, chief among them the applicant’s ability to pay in the future, will determine whether or not you are granted it.
- Make sure you don’t have any unfiled tax returns first. The candidate will be eliminated from the program if there are any missing returns. All OIC applications will be categorically refused if there are unfiled taxes.
- The IRS will then conduct an evaluation of the client’s financial situation in relation to the total amount payable. Review your finances to ensure that you qualify for this offer before you even submit the application.
- Finally, you need to get in touch with the IRS agent who is overseeing the review. You are permitted to call the IRS and submit your application while having an agent answer your questions.