Back to Blog Home

Step by Step Offer in Compromise Checklist

Looking for an easy way to make sure your Offer in Compromise is on track? We've put together a checklist to help you do exactly that, plus links to all the important info you'll need to prepare your

1 min read

Canopy

Canopy

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.

Leave a comment!

Next Up

Explore more of our recent Articles, User Stories, and Ebooks.

96% of Customers Would Recommend Canopy to a Friend or Colleague.

  • Danny N.

    Canopy takes the headaches out of client management by offering a way to keep client info organized.

  • John M.

    I love how easy it is to setup a new client in this software. Once set up, it's one click to get IRS transcripts downloaded for my review. This saves me at least an hour each week in comparison to the software I used to use.

  • CHRIS T.

    This makes workflow for tax resolution manageable. This business is a bunch of hurry up and wait. This system helps to refresh my memory while transitioning to different clients.

  • Bernadette S.

    The ability to securely share documents with clients as well as complete POAs from client contact data already in Canopy. The ability to route workflow between team members with color coded statuses allows us to work efficiently.

  • Mark B.

    Cool features, outstanding customer service, constantly updating to make it better. I love that I can upload files easily to a secure client portal and we don't have to email files anymore. Absolutely can't imagine not having this software.

  • Antonietta C.

    It's safe and secure. Clients are able to upload documents and the documents are saved their portal which as a result, keeps us better organized. The task feature keeps us organized and we know exactly the status of each client.

Read more on G2

Get your free demo of Canopy.

Submit this form, and we will be in touch soon to give you a custom demo.

Thank you.

Set a time for one of our product specialists to give you a guided tour practice.