The IRS has released the new Form 656-B, Offer in Compromise Booklet and the revised Form 656. The new Form 656 is now about 4 pages!
The IRS has the authority to compromise a civil or criminal tax liability before the case has been referred to the Justice Department for prosecution. For taxpayers who are experiencing financial difficulty and financial hardship, the Offer in Compromise Form (OIC) is submitted during the IRS collections process. The IRS has unlimited decision making power to settle a tax liability with the IRS.
It is important to refer to the Offer in Compromise Summary Checklist to make sure that all the necessary information has been reviewed and the appropriate forms have been completed.
It is also very important for a taxpayer to make sure that they are eligible for an Offer in Compromise. Generally, the IRS requires a certain period of tax compliance from the taxpayer before even accepting an Offer in Compromise application.
For help with the Offer In Compromise Application and process, please call our office at 305-672-4272 or e-mail us at firstname.lastname@example.org – for IRS help!