With limited exceptions, addressed below, an OIC requires submission of Form 433-A in addition to Form 656
You'll find instructions and the forms for submitting an offer in IRS Form 656
Booklet: Offer in Compromise.
You can make an offer in compromise using Form 656
, which like an installment agreement will require that you pay a fee ($150) for the privilege.
The IRS has released a revised Offer in Compromise Form 656
package, adding significant changes as a result of the 2005 Tax Act, including:
With this week's publication of revised tax Form 656
and an array of internal IRS changes underway, the agency is fundamentally changing the Offer in Compromise program.
A taxpayer can request consideration for an OIC by filling out Form 656
, Offer in Compromise, or Form 656L, Offer in Compromise (Doubt as to Liability) and submit it with their tax forms.
The SO informed Szekely that he was required to complete a Form 656
, Offer in Compromise, and another Form 433-A--this time, Form 433-A (OIC)--before she could consider a collection alternative.
, Offer in Compromise, and Form 656
-B, Offer in Compromise Booklet, have been revised to reflect these changes.
Item 8(e) of Form 656
provides that the taxpayer has agreed to the suspension of the remaining time period of the collection statute for the period that the offer is under review.
An offer to compromise a tax liability must be submitted in writing on Form 656
, Offer in Compromise.
form includes and replaces Form 656
-A, which previously had to be filed in addition to the Form 656
IRS officials are considering redrafting Form 656
to provide taxpayers with specific instructions on how to appeal a rejected offer.