How to pay your taxes – if you can’t pay in full: Offer in Compromise (Part II)

Before the IRS can consider your offer:

· you must file all tax returns you are legally required to file,

· make all required estimated tax payments for the current year, and

· make all required federal tax deposits for the current quarter.

The IRS cannot consider your offer if you are in bankruptcy or and generally if you are currently undergoing an audit.

Use the Offer in Compromise Pre-Qualifier on the IRS web site to explore the possibility that the Offer in Compromise program may be a realistic option to resolve your balance due.

To apply for an Offer in Compromise, complete one of the following forms:

Form 656-L, Offer in Compromise (Doubt as to Liability) Complete this if there is a genuine dispute as to the existence or amount of the correct taxt debt under the law.

Form 656, Offer in Compromise Complete this if you’re unable to pay the amount due, or have an economic hardship, or have another special circumstance that would cause paying the amount due to be unjust.

For more information, see Form 656-B, Offer in Compromise Booklet or visit

Next week – Another option – unable to pay at this time.

(IRS Publication 594 and (TTT 09/24/19)