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  • Form 656, Offer In Compromise - Irs.gov - Irs

Get Form 656, Offer In Compromise - Irs.gov - Irs

WARNING!!! The attached Form 656 is intended for tax professional use only and must not be used by the individual taxpayer. Completed financial statements and required application fee and initial.

This website is not affiliated with IRS

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Related content

About Form 656, Offer in Compromise | Internal...
Jun 4, 2021 — Use Form 656 when applying for an Offer in Compromise (OIC), which is an...
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Form 656-B Offer in Compromise Booklet - Columbus...
the IRS that settles a tax debt for less than the full amount owed. The offer program...
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Offer in compromise - Wikipedia
The Offer in Compromise (or OIC) program, in the United States, is an Internal Revenue...
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An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship.

One alternative to an offer in compromise is entering into a Partial Pay Installment Agreement (known by the IRS as a “PPIA”). The best part of a Partial Pay Installment Agreement – and what separates it from an OIC – is that the clock on your collection expiration continues to tick.

The cons include: With this method, you are able to reduce what you owe. However, you also surrender your right to tax credits that you may have access to each year. This could mean your tax return could be lowered each year going forward. OIC does create a public record.

Currently, the offer programs does not affect your credit score. However, if you're considering filing for bankruptcy then it will likely have an adverse effect on your credit score and there are other factors that can also negatively impact a person's number (late payments, loans, etc).

You'll have to pay an application fee of $205 and make offer payments (based on the method you choose) with your offer submission, unless you meet certain low-income guidelines, which are in the IRS OIC Booklet.

Confirm you're eligible and prepare a preliminary proposal with the Offer in Compromise Pre-Qualifier Tool. You're eligible to apply for an Offer in Compromise if you: Filed all required tax returns and made all required estimated payments. Aren't in an open bankruptcy proceeding.

In most cases, the IRS won't accept an OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer's ability to pay.

If you owe the IRS money, you may be considering submitting an offer in compromise (OIC). An OIC is a proposal to settle your tax debt for less than the full amount owed. The IRS will consider your offer if you can show that you are unable to pay your full tax debt. The success rate of OICs is 36.55%.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232