Penalties and Interest owed to IRS

The amount of an acceptable offer in compromise is based upon your current net worth plus what you could pay over the next couple of years (Depending on the length of your offer in compromise payment terms). The best way for you to figure out an acceptable offer in compromise is to get the form 656 off the IRS website (www.irs.gov), and complete it. While you are not currently employed, you should estimate when you might be able to secure a job, and how much it is likely to pay. It may be difficult for the IRS to accept an offer in compromise from you until you find another job. It is more likely (again depending on your current net worth) that they may find your account currently not collectable. Which means they will check back with you after a couple of months to see how you are making out financially.