Here's a checklist of all requirements in order for your Offer in Compromise to be considered "processable" by the IRS:
- Must not have an open bankruptcy case,
- Must have filed all federal tax returns that you are required to file,
- Must have filed payroll tax returns and made on-time deposits of payroll taxes for the prior two quarters (for business taxpayers),
- Must pay $150 Offer in Compromise application fee, or request a fee waiver,
- Must submit IRS Forms 656, 433-A, and/or 433-B, along with support documentation, and
- Must be current with estimated taxes and/or income tax withholding for the current year.
