What form does the IRS requre for an Offer in Compromise?
The Offer in Compromise, offered by the IRS is basically the federal form 656. (See Download Section). This is, in fact, the Offer in Compromise. Its just one form; its just the form 656. However, this form usually needs supporting documents ninety percent of the time. There are two distinct Offers in Compromise. One is a personal Offer in Compromise and the other is a business Offer in Compromise. There is a $150 application fee for each Offer in Compromise. Most taxpayer Offers are based on Doubt as to Collectability. This accounts for about ninety-five percent of the way Offers in Compromise are submitted. Doubt as to Collectability means that I, the taxpayer, have insufficient assets and income to pay the full amount of my tax debt. In these cases, it is necessary to support your Offer with the financial information form 433-A if you are filing a personal or sole proprietor Offer. A 433-A and a form 433-B are necessary if you are filing as a partnership or corporation. In some inst
