Enrolled Agent Exam [Part 3] 63, Offers in Compromise

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The three grounds for an Offer in Compromise: Doubt as to Liability, Doubt as to Collectibility, and Effective Tax Administration.

- The key forms required for an OIC application are Form 656, supported by financial statement Form 433-A (OIC) for individuals or 433-B (OIC) for businesses.

- How the Reasonable Collection Potential (RCP) determines the minimum acceptable offer amount for Doubt as to Collectibility cases.

- The critical low-income exception that waives the OIC application fee and initial payment for qualifying taxpayers.

- The strict five-year compliance period following an accepted OIC, where any failure to file or pay on time defaults the entire agreement.

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