♫ ♪ Opening music plays in the background ♪ ♫ Do you owe money to the IRS and are unable to pay the full amount?

If so, you may be eligible to settle your tax debt for less than you owe.

It´s called an Offer in Compromise or OIC or offer.

You can submit an offer by yourself or you can hire someone to help you.

So, what is an Offer in Compromise?

Here is a brief explanation.

An Offer in Compromise or offer is an agreement between you the taxpayer and the IRS that settles a tax debt for less than the full amount owed.

To be considered, generally you must make an appropriate offer based on what the IRS considers your true ability to pay.

This video playlist will lead you through a series of steps and forms to help you calculate an appropriate offer based on your assets, income, expenses and future earning potential.

We’ll then walk you through the actual Form 656, Offer in Compromise itself.

And, finally, we’ll go through a checklist to ensure you’re including everything you need to get your process to go smoothly.

Follow these steps to make an offer: Before you start investing time to do the paperwork necessary to submit an offer, you’ll want to check out the IRS’s Offer in Compromise Pre-Qualifier Tool to make sure you’re eligible to file one.

Find a link to this tool at www.IRS.gov/OIC Note: even though individuals and businesses can submit an offer, the tool is currently only available to individuals.

Now’s also a good time to suggest you review the information on IRS.gov simply use the search term “OIC.” You’ll want to review the Frequently Asked Questions most people have about offers.

If you feel you meet eligibility requirements to submit an offer, the next step is to visit IRS.gov/OIC to download the most current Form 656-B (OIC), Offer in Compromise booklet.

It is important to make sure you are using the most current year version of the booklet to avoid unnecessary issues with processing.

There is an application fee to submit an Offer in Compromise and you must submit a down payment, unless you qualify for the low-income certification or submit a Doubt as to Liability offer.

Check the most current OIC Form 656 B (OIC)

to get the current fee.

The booklet contains the OIC application form and other forms you’ll need to submit your offer whether you’re an individual or a business.

The forms include: Form 433-A (OIC) Collection Information Statement for Wage Earners and Self-Employed Individuals Form 433-B (OIC)

Collection Information Statement for Businesses Form 656, Offer in Compromise Note, this form is located at the end of the booklet, after the Forms 433-A & B (OIC)

It’s helpful to complete the information statement forms first, before you complete Form 656.

Each of these forms helps you determine a potential offer amount based on your assets, income, expenses, and future earning potential.

Be sure to read the instructions in the booklet.

Especially, the seven steps it lists as the application process.

Now before you watch the next video, be aware that if you or your business is currently in a bankruptcy proceeding, you are NOT eligible to apply for an offer.

Also be aware that a separate application is necessary for each tax entity.

For example, each individual taxpayer or non-sole proprietor business, such as a corporation or partnership, wanting to submit an offer for consideration needs its own application.

If you are an individual taxpayer, including one who is self-employed or is a sole proprietor, please watch the next video on completing Form 433-A (OIC).

If you are submitting an offer for a business only, please skip the next video and watch the third video in the playlist on completing Form 433-B (OIC).

There’s also a “Final OIC Package Checklist” video in this playlist for you to view.

Note: If you are working with an IRS employee, let them know you are sending or have sent an offer to compromise your tax debts.

This ends the video – thanks for watching.

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