Federal Taxes & OIC Question

[doni49]

I filled out my tax return yesterday and had planned to contact the IRS to see what they had to say about and Offer-in-Compromise.

Then I was reading through a book Personal Bankruptcy for Dummies and it said that you should wait until after discharge to make any kind of payment arrangements/OIC aggreements.

What is the norm on this?

TIA!

[AngelinaCatHub]

I am sorry to say that I cannot specifically answer your question. I owe about 15K now and when I filed, I was ordered to stop paying my tax bill that I set up in payment. After the discharge I set it up again. When you contact them, they are pretty good. I later asked for a reduction in my payment to about half. That went well. It is only when THEY contact you that it gets tough. I am pleased to just make payments. I don't have a lump sum to pay them off. That I understand is the only way they would settle for less. 'Hubac

[HHM]

If you only owe income tax for a single year, and it is a recent year, and you were discharged from BK, the odds of getting an OIC are practically nil.

As a practical matter, you will need to wait until discharge. the IRS is still a creditor, and just like all creditors in BK, cannot do anything with regard to a debt until your BK is discharged.

[doni49]

If you only owe income tax for a single year, and it is a recent year, and you were discharged from BK, the odds of getting an OIC are practically nil.

As a practical matter, you will need to wait until discharge. the IRS is still a creditor, and just like all creditors in BK, cannot do anything with regard to a debt until your BK is discharged.

I was afraid of that. But still hoped. Oh well, I'll just send in my return tomorrow and wait until after my discharge before I attempt an installment agreement.

Thanks for the info.