The IRS offers several ways for individuals to repay a tax debt. One option is the Offer in Compromise (OIC). If the taxpayer and IRS can agree on settling a tax debt for less than the amount originally owed, an OIC may be accepted and the tax debt resolved. It’s important to note that the OIC is a formula driven process based on the taxpayer’s financial information.
To start the OIC process, there’s an IRS Offer in Compromise Pre-Qualifier Tool that can determine if you’re eligible to submit an OIC. If eligible, you’ll receive a notice from the IRS that you can submit an OIC along with the IRS forms that need to be filled out and filed.
Please note the IRS states that an eligibility decision following submission of the OIC Pre Qualifier doesn’t mean your OIC will be automatically accepted. The OIC Pre Qualifier Tool is not applicable to corporations, partnerships, U.S. territory residents or military personnel using FPO or APO addresses.
What Information Do I Have to Enter in the Offer in Compromise Pre-Qualifier Tool?
Five areas related to your finances are covered by the Offer in Compromise Tool:
- Household and work expenses
- Income (includes self-employment income, disability, social security, stocks, etc.)
- Assets (vehicles, real estate property, valuable artwork/antiques, boats, etc.)
- Debts (loans, mortgages, personal loans)
- Tax filing status (individual, married, head of household)
- Basic contact information
Calculations to determine eligibility are based on recent collection standards established by the IRS. These calculations will tell you what the IRS thinks you’re capable of paying to resolve a tax debt. Options typically include installment payments, lump sum payments or possibly qualifying for hardship (uncollectible) status.
Where Can I Find the Offer in Compromise Pre-Qualifier Tool?
You can access and complete the online OIC tool here: Offer in Compromise Tool.
The IRS also provides a comprehensive booklet online detailing the Offer in Compromise process: OIC Booklet. This PDF includes the actual OIC documents you will need to complete if the tool finds you are eligible to apply for an OIC.
How is Wiztax Different than the Offer in Compromise Pre-Qualifier Tool?
Wiztax is more than just an Offer in Compromise Pre-Qualifier Tool. Our online system was created to assist taxpayers with quick tax relief, going beyond the IRS OIC Pre Qualifier tool to help you submit a successful Offer in Compromise. As former IRS Collection Officer, Adlai Climan states: “Wiztax is like TurboTax, for tax resolution.”
We’re with you from start to finish so you know you’re submitting the most complete and accurate Offer in Compromise to settle your tax debt for less.
- When entering information, Wiztax online system guides you every step of the way – from showing helpful tips to highlighting the most common answers to OIC questions.
- Wiztax pre-populates and displays the IRS National Standards for you.
- A Wiztax Expert with decades of tax law and IRS experience will do a Ready to File™ review with you to make sure your OIC is complete and accurate and that you’re getting the best OIC settlement amount given your current financial situation.
- In addition to an Offer in Compromise, Wiztax online system instantly determines if you also qualify for Hardship Status (“Currently Not Collectible”) and/or other Payment Plan options.
- Wiztax fills out all IRS Forms for you. You won’t need to print and fill out hours of IRS Forms yourself like you would need to do if using the IRS Offer in Compromise Pre-Qualifier Tool.
Forget about spending hours filling out and printing IRS documents. Start for free and let Wiztax be your personal assistant when it comes to settling your IRS tax debt for less with an Offer in Compromise.
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