QUESTION:
I tried filing my own offer in compromise, but it was returned because it was “not processable.” What does that mean? If I file another offer in compromise, how to I make sure it is processable?
ANSWER:
In order for an offer in compromise to be “processable” you have to be sure to send in all of the required information and make all of your required filings. To be more specific, you must pay the filing fee with your offer in compromise. You must also be current with all of your tax return filings. Meaning, you must have filed the last seven years of tax returns. If you are self-employed or responsible for making estimated tax payments, you must pay be current on those estimated tax payments for that year. You must also provide the financial information requested in the offer in compromise application and the financial statement. If you are a business entity, you must also be current with your withholdings, tax deposits and filings.