- Instructor: Attorney Bob Schaller
- Lectures: 6
- Quizzes: 1
Who is the Proper Party to Submit the OIC Application?
Before filing a formal Offer in Compromise application, a taxpayer may request a meeting in the IRS office which would have jurisdiction over the offer to explore the possibility of compromising unpaid tax liability. 26 C.F.R. § 601.203(d). The Offer in Compromise process is initiated by a taxpayer submitting to the IRS four items: (a) a Form 656, Offer in Compromise request to compromise the back-tax liability; (b) a Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals and/or a Form 433-B (OIC), Collection Information Statement for Businesses; (c) payment of a $205 application fee; and (d) payment of either a Lump-Sum Payment Offer payment or a Periodic Payment Offer payment. 26 C.F.R. §601.203(b). An Offer in Compromise should be filed with the district director or service center director. 26 C.F.R. §601.203(b).
But this begs the question WHO should submit the Form 656, Offer in Compromise requesting that the IRS compromise on the back-taxes owed. Well it depends on what type of entity is seeking to compromise the back-tax liability: an individual, two married individuals, estate, trust, or a business entity like a corporation or limited liability company.
Video Overview Discussing Who Should Submit the OIC Application
Overview of Proper Party to Submit OIC Application
General Rule Regarding Who Should Submit Application
Married Taxpayers Owing Exact Same Tax
Married Taxpayers Owing Different Tax
Individual Liability and Corporate Liability