How to Qualify for an Offer in Compromise
- 1). Review your tax payment options to determine if you have exhausted all of your available payment methods. You cannot have disposable income or assets that can be converted to cash in amount equal to or greater than the debt and qualify for an Offer in Compromise.
- 2). Verify that you are not a debtor in an open bankruptcy proceeding.
- 3). Enclose a check for the current application fee with your signed Form 656-A or qualify for waiving the fee by falling at or below the IRS Low Income Guidelines which are published in the Form 656-B Offer in Compromise Booklet.
- 4). Complete a Form 656-B Offer in Compromise and attach all needed documentation.
- 5). Submit a 20 percent lump sum payment or a periodic payment offer with your completed Offer in Compromise Application booklet and supporting documentation.
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