Hi, I may be in situation where I need to submit an offer in compromise.
I am overseas, and I understand I might have til mid December to file:
- October 15th: IRS Extension Deadline – All expats are eligible to extend their tax return due date to October. Expats who are not ready to file by June 15th can submit IRS Form 4868 to extend their tax deadline to October 15th.
- December 15th: Special Extension for Americans Abroad – Americans living abroad can write a letter to the IRS to request a final two-month extension to December 15th. Note: This is a discretionary extension and not automatically granted so it should only be used as a last resort.
My goal right now is to have as much time as possible to raise money to pay taxes, and limit penalties.
Say I made an offer to pay $15,000. Upon the date of submitting my return, should I send the $15,000 as my full OIC offer? Or, since processing an OIC takes a while, would I need to send some amount with the return designated as to pay down my tax bill? That is, if I sent $15,000 as an OIC on filing due date, and made it known that was my OIC amount, would the IRS consider me as having paid zero upon filing date, since the $15,000 might be tied up in the OIC processing timeline?
Does this make sense as I have described? Really, I am trying to figure out
1) What amount to send IRS by filing deadline, if I am prepared to make $15,000 OIC
thanks!
