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Why Was Your Offer in Compromise Denied? Avoid These 5 Mistakes

Video Transcript

Trying to reduce your IRS debt with an Offer in Compromise? Avoid these five common mistakes that could lead to denial. Number one, incomplete forms. Failing to fill out a Form 656 or missing required documents will result in an automatic rejection. Number two, unrealistic offers. Proposing an amount far below what the IRS deems acceptable will not work. Number three, non-compliance with tax filings. All past returns must be filed before applying for an Offer in Compromise. Number four, insufficient financial documentation. You have to provide detailed records for income and expenses. Number five, misunderstanding eligibility. Ensure you meet the IRS's strict criteria for financial hardship. Need help submitting a successful Offer in Compromise? Call Victory Tax Lawyers at 866-938-6918 or visit victorytaxlaw.com.

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This content was written and reviewed by the licensed tax attorneys at Victory Tax Lawyers, LLP. Our attorneys specialize in IRS tax relief and are licensed members of the California State Bar with a nationwide practice.

Last Reviewed: 2026  ·  Meet Our Attorneys →

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