Introduction
Applying for an Offer in Compromise (OIC) with the IRS is a process that requires thorough documentation to demonstrate your financial situation. When I went through this process, I discovered that having the right documents organized and ready made a significant difference. Here's a personal guide on the essential documents you need to gather for a successful OIC application.

Proof of Income
To start, the IRS requires comprehensive proof of your income. This includes:
• Recent pay stubs: I had to provide my most recent pay stubs from my employer.
• Profit and loss statements: As a self-employed individual, I needed to submit a detailed profit and loss statement for my business.
• Social Security or pension statements: If you receive Social Security benefits or pension income, include your award letters or statements.
• Other income documents: Any other income sources, such as rental income or dividends, need to be documented as well.
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Bank Statements
Next, I had to gather several months of bank statements. These statements provide the IRS with a clear view of my financial transactions and current balances. Typically, the IRS requires:
• Three to six months of bank statements: Ensure that all accounts, including checking, savings, and any other financial accounts, are included.
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Monthly Expenses
Documenting your monthly expenses is crucial for showing the IRS your financial obligations. The required documents include:
• Mortgage or rent statements: Proof of your housing costs.
• Utility bills: Statements for electricity, water, gas, and other utilities.
• Insurance premiums: Documentation of health, auto, and life insurance payments.
• Medical expenses: Receipts or statements for ongoing medical expenses.
• Other monthly expenses: This can include childcare, groceries, transportation, and any other regular expenses.
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Asset Documentation
The IRS will also need detailed information about your assets. This includes:
• Property appraisals: Recent appraisals or assessments of any real estate you own.
• Vehicle information: Documentation of any vehicles you own, including their current market value.
• Investment accounts: Statements from retirement accounts, stocks, bonds, and other investments.
• Personal property: Any significant personal property, such as jewelry or art, should be documented with estimated values.
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Tax Documents
Lastly, your tax-related documents are essential for the OIC application. These include:
• Recent tax returns: Copies of your federal and state tax returns for the past few years.
• Notices from the IRS: Any notices or letters you have received from the IRS regarding your tax debt.
• Installment agreements: If you are currently on a payment plan with the IRS, include the agreement details.
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Conclusion
Gathering the necessary documents for an offer in compromise Honolulu in Compromise can be a time-consuming task, but it is essential for demonstrating your financial situat4--