REVISED 8/2004) Why does the IRS require the July 2004 version of Form 656, Offer in Compromise package?
The July 2004 version of the Form 656 package was redesigned in order to assist taxpayers in the correct preparation of an OIC application, as well as reduce the burden associated with the process. The package contains the offer in compromise, instructions, Forms 433-A and 433-B, and a worksheet to help calculate the offer amount. A new addition is a processability checklist that helps taxpayers determine if they meet the eligibility requirements to submit an offer. The forms prompt taxpayers to attach necessary financial documents needed in the processing of the offer. (REVISED 8/2004) How do I know if I qualify for the income exception? The IRS developed an Offer in Compromise Application Fee Worksheet found in the Form 656 package to assist taxpayers in determining whether they qualify for the income exception. If they determine that they qualify, taxpayers must complete Form 656-A Income Certification for Offer in Compromise Application Fee, and attach it along with the worksheet t
