Eligibility begins with being current on all filing obligations. If you have unfiled Oklahoma tax returns, you must file them before the OTC will consider your offer. The OTC won’t settle with taxpayers who are still out of compliance.
Full financial disclosure is mandatory. You must provide complete and accurate information about your income, expenses, assets, and liabilities. The OTC uses this information to calculate your reasonable collection potential. Incomplete or inaccurate disclosures can result in rejection or, worse, acceptance of an offer that later gets rescinded.
Your offer must exceed what the OTC could collect otherwise. The OTC calculates how much they could collect from you through normal means, including payment plans, levies, and asset seizure. Your offer must at least match this amount. Offering less makes rejection likely.
Payment terms must be specified. Your offer should state whether you’re proposing lump sum payment, short-term installments, or longer payment terms. Lump sum offers are often more attractive to the OTC because they provide immediate resolution.
Staying compliant during the evaluation period is required. While the OTC reviews your offer, you must remain current on any new tax obligations that arise. Falling behind during the process suggests you can’t maintain compliance, undermining your application.
Processing takes time. The OTC reviews offers carefully, and the evaluation process can take several months. Be prepared for a waiting period and possible requests for additional information.
Rejection doesn’t end your options. If your offer is rejected, you may be able to appeal or submit a revised offer addressing the OTC’s concerns. Understanding why an offer was rejected helps you decide on next steps.
Professional assistance improves outcomes on compromise applications. Experienced representatives know how to present financial information favorably and navigate the process effectively.
If you’re considering an Oklahoma offer in compromise, contact us to evaluate your situation.
