Before you read "exactly" what the IRS tells you about the OIC or Offer in Compromise program, understand a few things the IRS doesn't say.
- If you read and follow the instructions you can prepare and file a successful OIC. This doesn't mean that the IRS won't reject your first or even second submission. Just follow the instructions and stay committed.
- When completing your expenses and income form (Form 656, Form 656-A, Form 656-B) ALWAYS remember that private school and your cable bill are NOT qualified expenses. This also applies to additional luxury items that you may be financially responsible for.
- If you have the finances, it's best to consult with an Enrolled Agent to help you file your OIC, especially if you have assets that you'd like to protect.
- Know that the IRS is governed by a book called "The Tax Codes." In most cases, their response to you is not personal, but legal. Yes, an IRS agent can make decisions which can make your life easier, and that is why you always want, to be honest, and professional when speaking with an IRS agent. It is a felony to lie to a federal agent.