Brandon Jones
Brandon Jones

We’ve intentionally avoided cluttering this checklist with in-depth instructions, but there’s more to this checklist than meets the eye. In addition to giving you a convenient list of steps, we’ve also linked a wealth of offer in compromise information throughout the checklist. If you’re looking for a detailed explanation for any of the steps listed in the checklist, just click the nearest “show me more” link and it will take you to an article that will give you the info you’re looking for.

Want to download the checklist and flowchart so you can always have it on hand? Click here to make it yours.

Offer in Compromise Checklist, OIC Flowchart

Step 1: Evaluate the Client

  • Have all legally required tax returns been filed?
    • If no, they are not eligible for an OIC at this time.
  • Has the client received a bill for at least one tax debt included in the offer?
    • If no, they are not eligible for an OIC at this time.
  • Has the client made all required estimated tax payments for the current year (or quarter if the client is a business owner with employees)?
    • If no, they are not eligible for an OIC at this time.
  • Is the client in an open bankruptcy proceeding, innocent spouse claim, or audit?
    • If yes, they are not eligible for an OIC at this time.

Also, one of the following must apply:

  • The client is unable to pay their tax debt in full for financial reasons (grounds for a Doubt as to Collectibility OIC).
  • The client disputes the tax debt (grounds for a Doubt as to Liability OIC).
  • The client is able to pay their tax debt in full, but doing so would cause undue hardship for the client (grounds for an Effective Tax Administration OIC).

Step 2: Prepare for the Engagement

  • If possible, hold a meeting with your client to set expectations.
  • Get a signed Engagement Letter.
  • Fill out Form 2848 to obtain Power of Attorney.

.  .  .

Download checklist to see the next steps.

Take it for
a test drive.

See what’s possible with Canopy.