π Free Workshop: IRS Offer in Compromise for Self-Performing Contractors
This free course walks contractors through the full process of applying for an IRS Offer in Compromise (OIC) β from eligibility and calculation to submission and success.
β 1. What is an Offer in Compromise?
- Definition: A way to settle your tax debt for less than the full amount owed.
- Why contractors with variable income often qualify.
- Common myths and facts about OICs.
π§Ύ 2. Who Qualifies?
- Filed all required tax returns
- Made estimated payments
- No open bankruptcies
π 3. Types of Offers in Compromise
- Doubt as to Collectibility
- Doubt as to Liability
- Effective Tax Administration (for hardship cases)
π‘ 4. How the IRS Calculates Your Offer
IRS Formula: Reasonable Collection Potential (RCP) = Asset equity + Disposable income (12β24 months)
- What contractors should count as income and expenses
- How to legally reduce your offer through documentation
π 5. Forms Youβll Need
- Form 433-A (OIC) for individuals and sole props
- Form 656 to make the actual offer
- Business income reports, equipment lists, bank records
π¬ 6. The IRS Review Process
- What happens after you submit
- Why some offers are rejected and what to do next
β οΈ 7. Pitfalls for Contractors
- Cash jobs and unreported income
- Overstated equipment values
- Missed deadlines or missing returns
π 8. Real Case Scenario & Class Activity
- Review a mock contractorβs Form 433-A
- Group discussion: how to adjust the offer
π― 9. Workshop Wrap-Up & Homework
- Download the IRS forms at IRS.gov
- Make a list of your business assets and income
- Estimate your Reasonable Collection Potential
Learn more or enroll in full courses at Intern Academy.