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Keyword: bill/debt/liability/agreement/paymentagreement/ owe tax payment/ tax bill/ oic/ offer in compromise

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1.5 IRS Procedures: Collection Procedural Questions


What are the requirements for an OIC?

In order to be considered for an OIC, a taxpayer must meet all of the following requirements:

  • Used the most current versions of Form 656, "Offer in Compromise," and Forms 433-A and 433-B, "Collection Information Statements." The most current versions are dated May 2001;
  • Submitted the $150 application fee, or Form 656-A, "Income Certification for Offer in Compromise Application Fee," with the Form 656 (effective 11/01/03);
  • Filed all required federal tax returns;
  • Filed and paid any required employment tax returns on time for the two quarters prior to filing the OIC, and is current with deposits for the quarter in which the offer in compromise was submitted; and
  • is not a debtor in a bankruptcy case.

    • Taxpayers must comply with all federal tax filing and paying requirements for a period of five years following acceptance of their OIC, or until the OIC is paid in full, whichever is longer. This also includes making required estimated tax payments and federal tax deposits.

    For additional topics onOffer in Compromise see Offer in Compromise.

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