Form OIC B-2 - Business Offer in Compromise Form OIC B-2 - Business Offer in Compromise 2025

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Youll have up to five months after your OIC is accepted to pay the full amount. If you select the periodic payment method, you have to make an initial payment with your offer, and then must pay the remaining balance in monthly payments within six to 24 months ing to your proposed offer terms.
Individuals requesting consideration of an offer must use Form 656‐B, Offer in Compromise, which may be found under the Forms and Pubs tab on .irs.gov. Completed financial statements and required application fee and initial payment must be included with your Form 656.
The cons include: With this method, you are able to reduce what you owe. However, you also surrender your right to tax credits that you may have access to each year. This could mean your tax return could be lowered each year going forward. OIC does create a public record.
An Offer in Compromise is a taxpayers proposal to pay the Office of Finance an amount that is less than the full amount due on an account. What tax liabilities can participate in the Offer in Compromise program? The Offer in Compromise program is limited to business tax liabilities only.
To qualify for an OIC, the taxpayer must have filed all tax returns, have received a bill for at least one tax debt included on the offer, made all required estimated tax payments for the current year, and if the taxpayer is a business owner with employees, the taxpayer must have made all required federal tax deposits

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An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you cant pay your full tax liability or doing so creates a financial hardship.
Figuring out the optimal amount to offer the IRS is not easy. It takes a lot of experience to know where the sweet spot lies for any given case. In general though, you can start off with an estimate of 1 year worth of your disposable income and add to that any valuable assets you can sell for additional cash.

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