What are the common errors when preparing an offer in compromise?
The following are key items that require the IRS to request corrections and delay the processing of OFFER IN COMPROMISEs: • Missing name, incorrect address (don’t use P.O. Box) or missing social security number or employer identification numbers on Form 656, Items 1- 4. • Tax liability periods/years missing on Form 656, Item 5. • Tax periods included where no tax is due on Form 656, Item 5. • No “offer to pay” amount shown on Form 656, Item 6. • Appropriate offer amount not submitted on Form 656, Item 7. • Form 656 has been altered (pen/ink changes made on the OFFER IN COMPROMISE). • Form 2848, “Power of Attorney,” not attached. More about Offer in Compromise Contact Us for Help!
The following are key items that require the IRS to request corrections and delay the processing of OFFER IN COMPROMISEs: • Missing name, incorrect address (don’t use P.O. Box) or missing social security number or employer identification numbers on Form 656, Items 1- 4. • Tax liability periods/years missing on Form 656, Item 5. • Tax periods included where no tax is due on Form 656, Item 5. • No “offer to pay” amount shown on Form 656, Item 6. • Appropriate offer amount not submitted on Form 656, Item 7. • Form 656 has been altered (pen/ink changes made on the OFFER IN COMPROMISE). • Form 2848, “Power of Attorney,” not attached. Contact Us for Help!
The following are key items that require the IRS to request corrections and delay the processing of OFFER IN COMPROMISEs: • Missing name, incorrect address (don’t use P.O. Box) or missing social security number or employer identification numbers on Form 656, Items 1- 4. • Tax liability periods/years missing on Form 656, Item 5. • Tax periods included where no tax is due on Form 656, Item 5. • No “offer to pay” amount shown on Form 656, Item 6. • Appropriate offer amount not submitted on Form 656, Item 7. • Form 656 has been altered (pen/ink changes made on the OFFER IN COMPROMISE). • Form 2848, “Power of Attorney,” not attached.
The following are key items that require the IRS to request corrections and delay the processing of OICs: Incorrect address (don’t use P.O. Box, must use street address), Form 656, Item 1. Taxpayer identification numbers missing or incorrect on Form 656, Item 2. EIN not included for an offer on a sole proprietor liability, From 656, Item 3. Tax liability periods/years missing on Form 656, Item 5. Tax periods included where no tax is due, Form 656, Item 5. Reason for compromise not checked, Form 656, Item 6. No “offer to pay” amount or an inappropriate amount shown on Form 656, Item 7. OIC includes joint liabilities without signatures of both parties, Form 656, Item 11. OIC includes single liabilities, but has signatures of two parties. OIC submitted by single taxpayer, but includes joint liabilities.
