Before applying for an OIC, you must first determine if you meet the criteria to be a candidate. Some of the requirements to be eligible for an Offer in Compromise include the following:
- All personal tax returns are filed
- All business tax returns are filed, if applicable.
- Ensure you have sufficient payroll withholding or are current with your quarterly estimated tax payments if you are self-employed.
- If you operate a business with employees, ensure you are compliant with your federal tax deposits.
- You must demonstrate the inability to pay back what is owed through a detailed financial analysis.