Form OIC I-2 - Individual Offer In Compromise - Virginia Tax 2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by entering your name(s) and address in the designated fields. Ensure that all information is accurate to avoid processing delays.
  3. Provide your email address and daytime telephone number for communication purposes. This will help the tax department reach you if needed.
  4. Fill in your Social Security Number(s) as required. This is crucial for identification and processing of your offer.
  5. Indicate the basis for your offer by checking the appropriate boxes, such as 'Request for waiver of penalty' or 'Doubtful liability.' Attach detailed explanations as necessary.
  6. Specify the total amount you are offering to pay and choose a payment plan that suits you, whether full payment or monthly installments.
  7. If applicable, grant power of attorney by filling out the representative's details, ensuring they can act on your behalf regarding this offer.
  8. Review all entries for accuracy before signing and dating the form. Attach any required documentation as outlined in the instructions.

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First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this criterion only when theres a genuine dispute as to the existence or amount of the correct tax debt under the law. Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible.
The Offer in Compromise (OIC) process also has some negative aspects. The key negative features of the program are: The taxpayer must make a full financial disclosure to the government (this mainly pertains to OIC based on doubt to collectibility);
How do you apply? You must complete an OIC Application (form CDTFA-490 for individuals or form CDTFA-490-C for all other entities) and submit it with the supporting documentation listed on the second page of the application to the California Department of Tax and Fee Administration collector assigned to your account.
The resulting amount is your monthly disposable income. Take that number and multiply by 12 (which is equal to one year worth of disposable income). This is the bare minimum you can offer to the IRS. They will almost never accept less than this amount.
What is an offer in compromise? An offer in compromise is a request to settle an assessment of tax, penalty, and/ or interest for less than the amount assessed.

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People also ask

You can use your Individual Online Account to check if youre eligible to file an offer in compromise (OIC), make payments, and file your OIC online.
How long does it take to do an offer in compromise with the IRS? The IRS typically takes between 6 to 12 months to process an Offer in Compromise, though complex cases can take longer.

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