Episode 27: How to Make an Offer in Compromise to the IRS

Attorney Merrell Bailey details the steps for cleaning up a hot mess with the IRS and making your Offer in Compromise (OIC).

An OIC may be accepted if the IRS determines that the debt cannot be paid or would create a financial hardship.

  1. First, you will need to determine if you are eligible to make an OIC.
  2. Determine your reasonable collection potential to determine a minimum amount to offer.
  3. Prepare your offer in compromise using Form 656.
  4. Submit the form and your fee.
  5. Wait while the IRS reviews your offer.
  6. Negotiate if necessary.
  7. Pay the agreed upon amount, on time, or risk defaulting on the agreement.

*Attorney Bailey does not do this type of legal work, though she will happily refer it out to get our clients the best result.