What are the most common errors when preparing an offer in compromise?
The following are the most frequent problems causing the IRS to demand corrections, and thereby delaying the processing of offers in compromise: Missing name, incorrect address (don’t use a P.O. Box address) or missing social security numbers or employer identification numbers on the Form 656. Open tax liabilities for one or more periods or years missing from the Form 656. Listing tax periods on the Form 656 for which no tax is due. No “offer to pay” amount shown on the Form 656. Form 656 altered in some way (i.e. pen and ink changes made on the offer in compromise form, attempting to change the terms of the contract). Form 2848 Power of Attorney not attached if the offer is submitted by a taxpayer’s representative.
