A form one files with the IRS declaring that the filer believes he/she does not owe the delinquent taxes, interest, and/or penalties that he/she is accused of owing. On the form, the filer explains the circumstances of his/her case and offers to pay a certain amount (the amount the filer believes he/she owes). A Form 656-L is used in an offer in compromise.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved