Instructions for Offer in Compromise Application for Self-employed Individuals - Mississippi

This document was released by Mississippi Department of Revenue and contains the most recent official instructions for Offer in Compromise Application for Self-employed Individuals .

FAQ

Q: What is an Offer in Compromise?
A: An Offer in Compromise is a program offered by the IRS to help individuals settle their tax debt for less than the full amount.

Q: Who is eligible to apply for an Offer in Compromise?
A: Any self-employed individual in Mississippi who owes back taxes to the IRS can apply for an Offer in Compromise.

Q: What are the requirements for an Offer in Compromise application?
A: You must file all required tax returns, have made all required estimated tax payments for the current year, and have made all required federal tax deposits for the current quarter.

Q: How do I apply for an Offer in Compromise?
A: You need to complete Form 656, Offer in Compromise, and submit it to the IRS along with the required documentation and application fee.

Q: How much does it cost to apply for an Offer in Compromise?
A: The application fee for an Offer in Compromise is $205, unless you meet the low-income certification guidelines.

Q: What happens after I submit my Offer in Compromise application?
A: The IRS will review your application and may request additional documentation or financial information. They will then evaluate your ability to pay and make a decision on whether to accept your offer.

Q: How long does it take for the IRS to process an Offer in Compromise?
A: It can take several months for the IRS to process an Offer in Compromise application.

Q: Is there a chance my Offer in Compromise could be rejected?
A: Yes, there is a chance that your Offer in Compromise could be rejected. The IRS will evaluate your offer based on your ability to pay and the overall likelihood of collecting the full amount.

Q: Can I appeal if my Offer in Compromise is rejected?
A: Yes, you can appeal the decision if your Offer in Compromise is rejected. You will need to follow the instructions provided in the rejection letter.

Q: What happens if my Offer in Compromise is accepted?
A: If your Offer in Compromise is accepted, you will need to comply with all the terms and conditions outlined in the acceptance letter. This includes making all required payments and filing all future tax returns on time.