2007-07-01 16:16:39 · 3 answers · asked by Bearwithme 7 in Business & Finance ➔ Taxes ➔ United States
It's not really about percentages when it comes to OIC's. Each case is individual and is treated individually. Be warned that an Offer is sometimes difficult to get accepted, and can sometimes be a long, drawn-out process. In addition, because so many of them end up being frivilous, the IRS has changed their rules, so that you have to submit $150 with your application just to apply.
There has to be clear proof that either you are not responsible for the taxes, there is little chance of them being able to collect based on your income and future expected income, or if you pay, it would cause great economic hardship on you.
If you pull up Form 656 at www.irs.gov (click on forms and publications), there is a worksheet in the instructions that gives you an idea of what a reasonable offer would be. Make sure your offer is reasonable or else it will be rejected automatically.
If you can't go the OIC route, perhaps setting up an installment agreement would be the best bet. There are also other options for paying your liability. If in the end you either don't feel comfortable filing the OIC yourself, or it is rejected, see a tax professional who specializes, or at least has experience, in delinquent payers.
2007-07-02 03:27:29 · answer #1 · answered by starlight_chic06 3 · 0⤊ 0⤋
OIC's have nothing to do with percentages. I has to do with your assets and future earning power. If your assets (including equity in your home) exceed your tax bill. They will probably reject any offer that you make.
2007-07-02 01:55:28 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
There is none. Each case stands on its own merit.
2007-07-01 17:33:47 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋