What if I Don’t Qualify for an Offer in Compromise?
Not everyone qualifies for an offer in compromise. Sometimes the amount the IRS is willing to accept is just not low enough to make sense in going through the process. In that case you can look into requesting an installment agreement or to be placed in currently not collectible status. An installment agreement is simply a monthly payment plan. While you pay each month interest continues to accrue. The amount of the payment plan is based on your monthly income and expenses; however, if you owe less than $50,000.00 and can full pay your debt in six years the IRS can allow you to pay what is called a streamlined installment agreement without the need for providing all of the necessary financial information that would be required otherwise.
You may not have enough money to make even a small monthly payment. If that is the case, currently not collectible may be your best option. In that case the IRS agrees not to take active collection measures against you for a period of time to allow you to get back on your feet. The statute of limitations period continues to run and there is no requirement for you to make any payment to the IRS. Of course, the interest is still accruing as well.