Offer in Compromise Pre-Qualifier online tool

Offer in Compromise Pre-Qualifier online tool.  This online tool can be used to determine if a taxpayer is eligible for an Offer in Compromise (OIC).  If the taxpayer is eligible for an OIC they must still complete and submit a Form 656 and a Collection Information Statement.  The tool brings the user (the practitioner or the taxpayer) through six steps:

1.    Status: This step contains questions to determine the taxpayer’s eligibility for an OIC.

2.    Basic info: This step contains questions regarding the taxpayer’s location and their tax debt.

3.    Assets: This step contains questions regarding the taxpayer’s assets (FMV and any encumbrances).

4.    Income: This step contains questions regarding gross wages, net business and rental income, and other sources of income.

5.    Expenses: This step requests information regarding the taxpayer’s necessary living expenses. The tool will consider the local allowable expense criteria for the taxpayer.

6.    Proposal: In this step the tool will suggest a starting point for the offer amount representing the sum of asset equity and present value of future income.

The taxpayer or their authorized representative should use the results from the OIC Pre-Qualifier to complete the required forms in the OIC booklet.  If the suggested amount cannot be offered, a lower amount could be justified if the taxpayer has qualifying exceptional circumstances (Section 3 of Form 656).