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Missouri Offer in Compromise: What You Need to Know

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Missouri Offer in Compromise: What You Need to Know

An Offer in Compromise is an agreement between you and the State Government to settle your back taxes for less than you owe.

An Offer in Compromise is strictly based on numbers; basically, your income versus your expenses and the equity in your assets.

If you can prove to the State you do not have the ability to pay back your taxes in full before the Statute of Limitations expires, then you may be eligible to file an Offer in Compromise. However, it will depend on your Reasonable Collection Potential and how much time is left before Statute of Limitations on the debt expires.

 

Qualifying for an Offer in Compromise

To qualify for an OIC with the State of Missouri, they provide a detailed explanation on the website, which states: “An Offer in Compromise, when submitted for reason of Doubt as to Collectability or under Effective Tax Administration - Economic Hardship(a) may be considered only after other payment options have been exhausted. If taxpayers are unable to pay their taxes in full, there are other payment options, such as monthly installment agreements or a loan from a financial institution, that must be explored before an Offer in Compromise can be submitted.

All tax returns in all tax types must be filed before the Offer in Compromise is considered. The Offer in Compromise must include tax due in all tax types. Any delinquency currently under bankruptcy can not be included in an Offer in Compromise.”

 

Submitting Your Offer in Compromise

Much like the IRS and other states, you must submit all required supporting documents and failure to do so will result in your Offer being rejected. Their list of documents includes:

 

  • Complete and Offer in Compromise Application Form MO-656.
  • Income – Copies of paystubs, earnings statements, Social Security Administration benefit letters, pension statements, bank statements reflecting direct deposits, etc.
  • Expenses – Copies of Utility statements, credit card or loan billings, medical bills, etc.
  • Accounts – Copies of all statements for bank, retirement, and investment accounts.

 

Offer in Compromise Pros and Cons

The Pros of submitting an Offer to the State of Missouri is they may allow your debt to be compromised and thereby removed. In addition, they do not require any payment to be made unless your Offer has been accepted.

The Cons are if the State rejects your Offer, it is not subject to administrative or judicial review.

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