Answer each question honestly. Most taxpayers answer No to all of these.
Filed bankruptcy in the past 7 years?
Select…
No
Yes
Say Yes if you filed for bankruptcy (like Chapter 7 or Chapter 13) at any point in the last 7 years. Not sure? Check your credit report — it will show any bankruptcies on file.
Is this bankruptcy currently active?
Select…
No
Yes
Say Yes if your case is still open and a court is still making decisions about it. If your case was already dismissed or discharged, say No.
Your OIC application cannot proceed at this time
An active bankruptcy prevents the IRS from accepting or processing an Offer in Compromise. While your
bankruptcy is open, the IRS is prohibited from collection activity — an OIC is not available until
your case is closed or dismissed. Please reach out to TaxAudit so we can help you understand your next
steps.
Contact TaxAudit
Lived outside the U.S. for 6+ months in the past 10
years?
Select…
No
Yes
Say Yes if you spent more than 6 months in a row living in another country at any point in the last 10 years. Short vacations and work trips don't count.
Party to any lawsuit or litigation?
Select…
No
Yes
Say Yes if you are currently involved in a lawsuit — either as the person suing or the person being sued. This includes personal injury cases, divorce cases with money or property disputes, and business disagreements.
Party to any IRS or U.S. government litigation?
Select…
No
Yes
Say Yes if the IRS or any federal or state government agency has taken you to court, or if you have taken them to court. This includes Tax Court cases.
Types of tax and periods involved
Describe the type of tax and the years at issue — for example, "income tax for 2018 and 2019" or "payroll taxes for Q1–Q3 2020."
Trustee, fiduciary, or contributor of a trust?
Select…
No
Yes
Say Yes if you manage money or property for someone else through a legal trust, or if you set up a trust and put money into it. If someone named you to handle their finances or estate, say Yes.
Have a safe deposit box?
Select…
No
Yes
Say Yes if you rent a locked box at a bank or credit union to store valuables. The IRS will need to know what is inside.
Beneficiary of a trust, estate, or life insurance
policy?
Select…
No
Yes
Say Yes if someone has named you to receive money or property when they pass away — through a will, a trust, or a life insurance policy. Say Yes even if you have not received anything yet.
Name of the trust, estate, or policy
Enter the full name of the trust, estate, or life insurance policy that names you as a beneficiary.
Place where recorded (optional)
Enter the court, county, or location where the trust or estate is recorded, if known.
EIN of trust or estate (optional)
Enter the Employer Identification Number of the trust or estate, if you have it.
Anticipated amount to be received (optional)
Enter the dollar amount you expect to receive, if known. Leave blank if uncertain.
When will the amount be received (optional)
Describe when you expect to receive the funds — for example, "upon the grantor's death" or a specific year.
Transferred assets over $10,000 in the past 10 years?
Select…
No
Yes
Say Yes if you gave away, sold for less than it was worth, or signed over any property or money totaling more than $10,000 to another person in the last 10 years. Normal everyday purchases do not count — this is about assets you owned that you transferred to someone else.
Own assets or property outside the U.S.?
Select…
No
Yes
Say Yes if you own real estate, bank accounts, investments, or anything else of value in another country. This includes vacation homes, foreign bank accounts, and overseas business interests.
Description, location, and value
Describe each foreign asset, where it is located, and your best estimate of its current value. Include real estate, bank accounts, investments, or any other property held outside the U.S.
Funds held in trust by a third party?
Select…
No
Yes
Say Yes if someone else is holding money that belongs to you — like a lawyer managing a settlement, an escrow account waiting to be released, or funds being held until a legal matter is resolved.
