Get the free Offer in Compromise - Periodic Payment Voucher

Select “Offer in Compromise — Subsequent Periodic Payment”. If you qualified for the Low Income Certification in Section 1 of Form 656, Offer in Compromise, no payments are required; however,

How to fill out offer in compromise

How to fill out offer in compromise

1. Gather all the necessary financial information and supporting documents.
2. Complete and submit Form 656, Offer in Compromise.
3. Include a detailed explanation of your financial situation and why you are unable to pay your tax debt in full.
4. Attach all the required financial statements, tax returns, and other supporting documents as specified in the instructions.
5. Calculate and offer an amount that you can afford to pay as a lump sum or in installment payments.
6. Include the appropriate application fee or request a waiver if you meet the eligibility criteria.
7. Wait for the IRS to review your offer and make a decision.
8. If your offer is accepted, you must comply with all the terms and conditions outlined in the acceptance letter.
9. If your offer is rejected, you have the right to appeal the decision or explore other options for resolving your tax debt.

Who needs offer in compromise?

1. Individuals with significant tax debt that they are unable to pay in full.
2. Taxpayers who have experienced financial hardship or circumstances that make it impossible to meet their tax obligations.
3. People who want to avoid enforced collection actions such as wage garnishment or bank levies.
4. Taxpayers who are willing to negotiate and settle their tax debt with the IRS.
5. Business owners or self-employed individuals facing high tax liabilities.
6. Taxpayers who have already explored other payment options but couldn't reach a feasible resolution.

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What is offer in compromise?

Offer in compromise is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed.

Who is required to file offer in compromise?

Taxpayers who are unable to pay their full tax liability or would suffer financial hardship by doing so may be eligible to file an offer in compromise.

How to fill out offer in compromise?

Taxpayers can fill out Form 656, which is the offer in compromise application, and provide all required financial information and supporting documentation.

What is the purpose of offer in compromise?

The purpose of offer in compromise is to help taxpayers who are unable to pay their full tax debt to settle for a reduced amount and resolve their tax liability.

What information must be reported on offer in compromise?

Taxpayers must report their income, expenses, assets, and liabilities on the offer in compromise application, along with supporting documentation.