To fill out IRS Form 656 (Offer in Compromise), you must complete all sections with accurate personal or business information, list the tax debts you wish to settle, select a reason for your offer (e.g. doubt as to collectibility), propose a payment plan and offer amount, and sign and submit the form with the required $205 fee and initial payment (unless you qualify for the low-income waiver), along with financial disclosure forms (Form 433-A OIC for individuals or 433-B OIC for businesses).
According to a 2022 National Small Business Association survey, about 1 in 3 small-business owners struggles with back taxes, underscoring why the IRS Offer in Compromise (OIC) program is in such high demand. This expert guide explains how to fill out IRS Form 656 – the key to the OIC – with detailed steps, examples, and answers to common questions. Whether you’re an individual taxpayer, a self-employed contractor, or a business owner with payroll tax issues, understanding Form 656 can help you settle tax debt for a fraction of what you owe under the right circumstances.
What You’ll Learn:
- 📝 Step-by-step how to complete Form 656 accurately to maximize your offer’s chance of IRS acceptance.
- 💼 Individual vs. business OIC: how personal tax debt and business payroll tax debt offers differ, including key forms like Form 433-A OIC and 433-B OIC.
- ⚠️ Common mistakes that lead to OIC rejections (and how to avoid these pitfalls when preparing your offer).
- 📊 Real-world examples of successful offers for an unemployed individual, a self-employed freelancer, and a small business with back payroll taxes.
- 🔍 Insider tips & FAQs on OIC eligibility, including low-income qualifiers, using the IRS Pre-Qualifier Tool, and navigating state OIC programs versus the federal process.
Step-by-Step Walkthrough: Filling Out Form 656
Filing an Offer in Compromise involves several detailed steps. Before starting, make sure you’re eligible: file all required tax returns, make any required estimated tax payments, and ensure you’re not in an open bankruptcy (the IRS will reject offers from anyone in active bankruptcy). If you’re an employer, you also need to have made all required federal tax deposits for the current and past two quarters. Once you’ve cleared these preliminaries, use the official IRS OIC Pre-Qualifier Tool (an online questionnaire) to gauge your chances – it’s not mandatory, but it’s a helpful planning step to estimate a realistic offer amount.
Now, gather the forms and documentation you’ll need: Form 656 itself, plus the appropriate Collection Information Statement (Form 433-A (OIC) for individuals and self-employed, and/or Form 433-B (OIC) for businesses). You’ll also need documentation of your financials (bank statements, pay stubs, asset appraisals, etc.) to support the numbers on the 433 forms. Have a check or money order ready for the $205 application fee and for your initial offer payment (unless you qualify as a low-income applicant, in which case these are waived). With everything in hand, follow these steps:
- Provide Your Basic Information: Start Section 1 of Form 656. For an individual, enter your name, address, Social Security Number (or ITIN), and contact info. If it’s a joint offer (married filing jointly), include your spouse’s info as well. Business applicants skip to Section 2 instead, but for now, if you’re an individual, also indicate your county of residence and any business name if you operate as a sole proprietor. Make sure everything here matches IRS records to avoid processing delays.
- List the Tax Debts You Want to Settle: Still in Section 1 (for individuals) you’ll specify the type of tax and periods you are including in the offer. Examples: Form 1040 income taxes for tax years 2018, 2019, 2020; or Trust Fund Recovery Penalty (from unpaid payroll taxes) for a certain quarter; or other liabilities like civil penalties. Check the appropriate boxes or write in the type of tax if it’s “Other.” Only include periods that have an outstanding liability you wish to compromise. Double-check that the tax form number and years/quarters are correct and encompass all the liabilities you intend to settle – missing a year could mean that debt isn’t covered by your offer. (Business applicants will do this in Section 2, listing things like Form 941 payroll taxes for specific quarters, Form 1120 corporate income tax for certain years, etc.)
- Claim Low-Income Certification (If Applicable): At the end of Section 1, Form 656 includes a Low-Income Certification section with an income table. Check this box if your household size and income fall below the threshold (around 250% of the federal poverty level, varying by household size). By certifying as low-income, you do NOT need to send the $205 fee or any initial payment with your offer – the IRS will also not require you to continue making installment payments while they review the offer. Tip: If you think you qualify, use the chart provided in the Form 656 instructions to confirm based on your family size and income. This can save you money and is important to fill out correctly; otherwise, the IRS will expect the fee and payment.
- Business Applicant Information (if applicable): If you are submitting an offer on behalf of a business (for example, a corporation, partnership, or LLC with tax debt), complete Section 2 instead of Section 1. Here you’ll input the legal business name, employer identification number (EIN), business address, and the type of tax debts owed by the business. As with individual offers, list all relevant tax forms and periods (e.g. Form 941 for specific quarters, Form 940 for unemployment tax, or state “Sales Tax” if it’s a state offer, etc., though Form 656 is for federal taxes only). Business offers often involve payroll taxes or corporate income taxes. Ensure the information matches exactly how the IRS knows your business (use the name/EIN as it appears on IRS notices).
- Choose a Reason for the Offer (Grounds for Compromise): In Section 3 of Form 656, you must indicate why the IRS should accept your offer. There are two main options for a standard OIC:
- Doubt as to Collectibility (DATC): Check this if you cannot afford to pay the full tax debt. This is the most common reason – you’re essentially saying your assets and income (even over the remaining statutory collection period) won’t cover what you owe. Most individual and business offers fall under this category.
- Effective Tax Administration (ETA): This is for rare situations where you technically could pay the full amount, but doing so would cause exceptional hardship or would be unfair/inequitable. If you choose this, you must attach a detailed written explanation of your special circumstances. (For example, a serious medical condition that requires funds which would otherwise go to IRS, making full payment unfair.) Only individuals (not businesses) can use the economic hardship subset of ETA. There’s also an “other extraordinary circumstances” ETA basis if paying in full undermines public confidence in tax fairness, but that’s extremely uncommon.
- Doubt as to Liability (DATL): Note: This option is not handled with the standard Form 656 – it uses a different form (Form 656-L). Do not check DATC or ETA if your real argument is that you don’t owe the tax; in such a case, you would file Form 656-L separately, before or instead of a collectibility offer. For our Form 656 (which covers collectibility or hardship offers), you generally will be checking the box for doubt as to collectibility in most cases.
- Calculate and Propose Your Offer Terms (Payment Option): Section 4 of Form 656 is where you lay out what you’re offering to pay and how you will pay it if the IRS accepts. You have two payment options:
- Lump Sum Cash Offer: This means you plan to pay the offered amount in 5 or fewer payments, within no more than 5 months after acceptance. If you choose this, you must enclose 20% of your offer amount now as a down payment. (For example, if you offer $10,000, you send $2,000 with the application as a non-refundable initial payment.) You can make up to five installment payments to cover the rest, but all within five months of acceptance. On the form, you’ll fill in the total offer amount and how it will be paid (e.g. “$2,000 with offer, remainder $8,000 within 5 months in 4 payments of $2,000 each” or similar).
- Periodic Payment Offer: This means you intend to pay your offer over 6 to 24 months in monthly installments. With this option, you must include at least the first monthly installment with the application (also non-refundable). Importantly, you must continue making monthly payments on schedule while the IRS is evaluating your offer, not just after acceptance. For instance, if you offer $12,000 to be paid over 24 months, you might pay $500 per month. You’d send $500 with the offer, and continue to send $500 each month while waiting for a decision. If the offer gets accepted, you keep paying monthly until the $12,000 is fully paid (within those 24 months). If it’s rejected, any payments you sent in will be applied toward your tax debt balance.
- Designate a Payment (Optional Section 5): Section 5 of the form allows you to specify how you want your payments applied to particular tax years or debts. This is optional and only matters if you have a preference. For example, if you’re sending in $2,000 with an offer that covers 2018 and 2019 taxes, you might want that $2,000 to go entirely to 2018 if it benefits you (say, to reduce a particular year’s balance that might have higher interest). If you leave Section 5 blank, the IRS will apply any payments in the best way it sees fit (usually in the order of its advantage – often the oldest tax year first). If you have only one tax year or one type of tax debt in the offer, you can ignore this section. If you do fill it out, be specific (e.g. “Apply the initial $500 payment to 2018 income tax liability”).
- Source of Funds and Future Compliance (Section 6): In Section 6, the IRS wants to know where the money for your offer is coming from and some compliance certifications:
- Source of Funds: Briefly explain how you obtained (or will obtain) the money for the offer amount. For example, “Savings and borrowing from family,” or “Cashed out retirement account,” or “Proceeds from selling my car.” They want to ensure your funding source is legitimate and that you indeed have a plan to get the money. This also informs them if, say, you plan to sell an asset (which they might have expected you could use to full-pay anyway). Be honest; this is usually a one-line description.
- Tax Compliance Confirmation: Still in Section 6, you must confirm that you have filed all required tax returns (or will file any missing return within the next 12 weeks) and that you’re current on estimated tax payments if required (for instance, if you’re self-employed, you should be making current quarterly estimates, and if you have employees, your current payroll deposits must be made). There’s a checkbox or line to indicate this. Do not neglect this: if you are not in filing compliance or current on current-year taxes, the IRS will return your offer without even considering it. For any years you aren’t required to file (e.g., very low income years, or maybe the business ceased operations in a certain year), note those as not required. Essentially, by signing this form you are promising that you’re in compliance going forward.
- Installment Agreements: There may be a question here asking if you are currently in an installment agreement (payment plan) with the IRS. If yes, the form will instruct that by submitting an OIC, you acknowledge that any existing installment plan is on hold and you don’t have to make those payments while the offer is pending.
- Understand and Agree to the Terms (Section 7): Section 7 contains important terms and conditions of the offer in compromise. Fortunately, you don’t write anything in this section – it’s all boilerplate text – but you must read and agree to it. Key terms to be aware of:
- Future Compliance: If your offer is accepted, you must file and pay on time for the next five years (and include the current year if you got an extension) – otherwise, your offer can be defaulted and the original debt reinstated. This is crucial: many people get an offer accepted then fail to pay next year’s taxes, which voids the compromise.
- Refund Forfeiture: If the IRS accepts your offer, any tax refunds due to you for the year the offer is accepted will be kept by the IRS. For example, if your offer is accepted in 2025 and you’re due a refund on your 2025 return, IRS will apply it to your tax debt – you won’t get that refund. This is a standard condition.
- Federal Tax Liens: The IRS may keep any tax liens in place until you finish paying the offer amount in full. Only after you pay in full and the terms are satisfied will they release liens. While the offer is pending, they generally won’t seize assets, but the lien is their security.
- No Default on Payments: You must timely pay the offer payments as agreed. If you miss a payment, the offer could be defaulted.
- Extension of Collection Period: While your offer is being evaluated, the statute of limitations on IRS collections is extended. Normally the IRS has 10 years from assessment to collect taxes; an OIC will pause that clock during evaluation (and during any appeal), effectively giving IRS more time if the offer is not accepted. You are agreeing to this extension by submitting the offer.
- Public Record: By law, certain details of accepted offers are publicly available for inspection (the IRS keeps a public record in certain offices). In practice, this is rarely accessed by anyone, but it’s noted in the terms.
- Section 7 basically outlines these and other standard conditions. Ensure you understand them fully – by signing, you agree to all of it.
- Sign and File the Form (Section 8 and 9): Finally, in Section 8, sign and date the form. If it’s a joint offer by spouses, both must sign. Use the current date and your full legal name. Section 9 is for any paid preparer or representative (like your CPA or attorney) to sign, if you had help filling out the form. If you filled it out yourself, leave Section 9 blank or write N/A. Double-check that you signed in all the right places – an unsigned Form 656 will be returned unprocessed.
- Attach Your Financial Statements and Documents: A Form 656 by itself is not enough; you must include the completed Form 433-A (OIC) for individuals (and/or Form 433-B (OIC) for businesses, if it’s a business offer or if you’re an individual with an operating business). These forms are quite extensive – you’ll list all your assets, accounts, income, and expenses in detail. Ensure every figure is backed up by documentation (which the IRS can request). If you have any required attachments (like bank statements, pay stubs, asset appraisals, etc.), gather them as outlined in the Form 433 instructions. The Offer in Compromise Booklet (Form 656-B) provides a checklist of what to include. Generally, you’ll attach the forms 433-A OIC/433-B OIC right behind Form 656, along with copies of your supporting docs (don’t send originals).
- Include Payment and Mail the Package: Prepare a check or money order for the $205 application fee (if not low-income certified) payable to “United States Treasury.” Also prepare a second check for the initial payment required by your offer type (unless low-income). For a lump sum offer, that’s 20% of your total offer amount; for a periodic offer, it’s the first month’s payment. You can also pay these electronically via the IRS’s Electronic Federal Tax Payment System (EFTPS) or other online methods – if so, you’d note the payment confirmation numbers in Section 5 of Form 656. Many applicants still send checks; if you do, write your name and SSN/EIN and “OIC” in the memo to clearly identify it.
Once everything is assembled (Form 656, Form 433-A/B, all attachments, and payments or proof of payment), mail the package to the correct IRS OIC processing center. There are only two IRS centers that handle offers (located in Memphis, TN and Holtsville, NY) and the correct one depends on where you live or where your business is based – the Form 656-B booklet or IRS website will list which address to use for your state. Make sure to use the latest address, as the IRS occasionally updates them. It’s wise to send the offer by certified mail or other trackable delivery, so you have proof it was delivered.
- Await IRS Confirmation and Respond to Any Requests: After submission, the IRS will send a letter acknowledging receipt of your offer and assigning a case number. While you wait (it can take 6-12 months or more for a final decision, depending on complexity and backlog), be prepared to provide additional documentation if the IRS requests it. They might ask for updated financial info, especially if the process is lengthy. If you chose the periodic payment option, continue making your scheduled monthly payments while the offer is under consideration. Keep records of all payments and correspondence. Importantly, stay in compliance – continue to file all required tax returns on time and pay new taxes as they come due. If you fail to stay current (for instance, you don’t pay your 2023 taxes while an offer for prior years is pending), the IRS can return or deny your offer.
- Negotiation, Acceptance or Rejection: An IRS OIC examiner will review your financials to decide if your offer is at least equal to your reasonable collection potential (RCP) – that’s basically the IRS’s calculation of how much they could collect from you via enforced means over the remaining collection period. If your offer is too low, they may counteroffer or simply reject it. You’ll have an opportunity to discuss or amend your offer if the examiner finds issues. If accepted, congratulations – you’ll receive a written acceptance, and as long as you pay the remaining amount as agreed and keep to the terms (e.g. staying tax-compliant for 5 years), your tax debt will be settled and the IRS will release any tax liens after you pay in full. If rejected, you’ll be informed by mail of the reasons. You typically have 30 days to appeal a rejection to the IRS Office of Appeals if you believe the offer was wrongly denied – use Form 13711 to appeal. Sometimes, offers are neither accepted nor rejected but returned (e.g., because you were not compliant, missing info, or fell out of the process); a return is not appealable but you can often fix the issue and reapply.
Following these steps carefully gives you the best shot at a successful Offer in Compromise. Filling out Form 656 is detail-intensive, but it’s essential to be truthful and thorough. Double-check all entries and ensure consistency between Form 656 and your 433 financial statements. Next, let’s look at some common mistakes to avoid and review specific examples of how different taxpayers might fill out Form 656 and structure their offers.
Common Mistakes to Avoid on Form 656
Even small errors or omissions can derail an Offer in Compromise. Here are some frequent mistakes and pitfalls when completing Form 656 (and the OIC application in general) – make sure to steer clear of these:
- Leaving Out Required Information: Incomplete forms are a top reason offers get returned without consideration. Avoid: missing signatures, blank fields without explanation, or failing to list all required tax periods. Always fill in every section or mark “N/A” if it doesn’t apply. Double-check names, SSNs/EINs, addresses, and dollar amounts for accuracy. Tip: Use the IRS checklist in Form 656-B to ensure you included everything before mailing.
- Not Including Form 433-A OIC/433-B OIC or Proof: Form 656 is just one piece; forgetting to include the detailed financial statement (433-A OIC/433-B OIC) or required attachments (like bank statements, pay stubs, vehicle registrations, etc.) will cause delays or a return. Solution: Carefully follow the instructions in the OIC booklet about what financial documentation to include. A complete financial disclosure is mandatory for a collectibility offer – the IRS needs to verify your inability to pay.
- Failing to Pay the Fee or Initial Payment: Except for low-income certified applicants, you must include the $205 application fee and the 20% initial payment (for lump sum offers) or first installment (for periodic offers). Many offers are returned because the check was missing, bounced, or made out to the wrong payee. Solution: Ensure your checks are enclosed and payable to “U.S. Treasury.” If you pay electronically, record the confirmation number on the form (Section 5) or include a printout. If you mistakenly send no payment and didn’t certify as low-income, the IRS will likely reject the submission as unprocessable.
- Misunderstanding Low-Income Certification: Some filers who qualify as low-income forget to check the box and end up unnecessarily paying the fee. Others check it when they don’t qualify, leading the IRS to treat the offer as incomplete. Avoid: misreading the income table. Verify your household size and income against the chart provided by the IRS (based on 250% of poverty guidelines). If you qualify, check the box so you don’t need to pay. If not, be sure to include payment.
- Inaccurate Financial Reporting: The IRS will cross-check the numbers on your Form 433-A/B OIC with what you put on Form 656 and their internal data. Inflating expenses or hiding assets is a big mistake – it can not only get your offer rejected, but intentional omissions can be considered fraudulent. Avoid: “fudging” numbers. Report all assets (even that old car or small savings account) and all income sources. On the flip side, don’t forget to claim allowable expenses; use the IRS allowable expense guidelines but be realistic. If something doesn’t match (say, you listed a debt on 433-A but forgot to mention that year on Form 656), it raises red flags. Accuracy and consistency are key.
- Offering Too Little (Unrealistic Offer): A common mistake is submitting a token low offer (like “$1 to settle $50,000”) without basis. The IRS will generally reject offers that are clearly far below your reasonable collection potential. While everyone wants the lowest settlement, you must usually offer an amount at least equal to your net realizable equity in assets plus some portion of future income. Avoid: lowball offers that don’t clear that threshold unless you have a special hardship argument. Use the Pre-Qualifier Tool or consult the formula: for lump sum offers, typically offer = net assets + 12 months of disposable income; for periodic offers, net assets + 24 months of disposable income. If you offer significantly less, be prepared with a solid explanation (like exceptional circumstances under ETA).
- Not Staying Current with Taxes: This is a mistake that can happen in two stages – before or after submitting the offer. Pre-submission: If you haven’t filed all past returns, or if as a self-employed individual you aren’t making current quarterly estimated payments, the IRS will return your offer immediately for non-compliance. Post-submission: If you filed the offer and then miss a required tax deposit or file your next tax return late, the IRS can reject or return the offer. And crucially, after acceptance, failing to pay your future taxes on time for 5 years will default the agreement. Solution: Always stay in compliance. Before sending the offer, double-check that every return is filed (even if you can’t pay the balance – file the return). Continue timely filing and paying for the current year. If you have employees, stay current on payroll deposits. Demonstrating a clean compliance record is necessary to get and keep an OIC.
- Ignoring Requests or Deadlines: Once an offer is in review, the IRS agent might request additional information or clarification. A big mistake is ignoring their letters or not sending the requested info by the deadline given – this can lead to your offer being closed as withdrawn or returned. Avoid: procrastination or poor communication. If you get a request for, say, updated pay stubs or an explanation of a bank deposit, respond promptly with the information. If you need more time, call the examiner and ask – they often grant short extensions. Also, if you decide to withdraw your offer or the situation changes (like you file bankruptcy), inform the IRS – don’t just drop communication.
- Using the Wrong Form or Process: Occasionally, people fill out Form 656 when they actually should use a different approach (for instance, trying to contest the amount owed via an OIC when they really need to file an audit reconsideration or amended return, or using Form 656 instead of Form 656-L for a liability dispute). Another related mistake is submitting one Form 656 for both individual and business debts combined – the IRS requires separate offers if, for example, you have personal 1040 debt and your LLC has employment tax debt. Solution: Make sure an OIC is the right tool for your situation. Use Form 656 only for collectibility/hardship offers. If you have business debt and personal debt, prepare separate Form 656 for each (and separate fees/payments). And if you’re actually challenging whether the tax is owed, use Form 656-L first or concurrently, as appropriate.
Avoiding these mistakes can significantly improve your chances of the IRS accepting your offer. It often helps to have a tax professional review your packet before submission, but whether or not you use one, double-check everything. An Offer in Compromise is detailed – but diligence and honesty go a long way toward success.
Examples: Offer in Compromise Scenarios 📄
Let’s illustrate how IRS Form 656 might be filled out and an offer structured for a few different kinds of taxpayers. Below are three common scenarios – an unemployed individual, a self-employed contractor, and a small business with payroll tax debt – and how each might approach the OIC process:
| Scenario | Offer in Compromise Approach (Example) |
|---|---|
| Unemployed Individual with Low Income | Situation: John is out of work, owes $25,000 in older 1040 taxes. He has no significant assets (maybe a small car and minimal savings). OIC Strategy: John checks the Low-Income Certification on Form 656 (household of 1, income below threshold). He lists his tax years owed (2018-2020 income taxes). He selects “Doubt as to Collectibility,” since he clearly cannot pay in full. On Form 433-A(OIC), he shows virtually no disposable income after basic expenses. Offer Amount: John offers $50 – essentially a token amount representing what little asset equity he has (perhaps just a few dollars in the bank). Because he’s low-income, he pays no fee or upfront percentage. Expected Outcome: The IRS will evaluate his future earning potential. Since he’s been unemployed long-term with no prospects and no assets, $50 might actually be accepted. However, if the IRS believes John could get a new job soon, they might counteroffer asking for more based on projected income or hold the offer until he’s employed to gauge collectibility. Assuming his situation seems unlikely to improve, this could be accepted, giving John a fresh start. |
| Self-Employed Contractor (Irregular Income) | Situation: Alice is a freelance graphic designer with fluctuating income. She owes $40,000 in income taxes (1040) from several years where business was good but didn’t pay enough taxes. Now her income has dropped. She owns a car worth $5,000 and has $2,000 in savings, but no real estate. OIC Strategy: Alice fills out Form 656 for her personal tax debt and attaches Form 433-A(OIC). She selects “Doubt as to Collectibility.” Her financials show that after necessary living expenses, she has about $200/month in disposable income currently. Using the IRS formula for a lump sum offer, she calculates: Net equity in assets (~$2,000 after allowable exemptions) + 12 months of $200 = $2,000 + $2,400 = $4,400 offer. Offer Amount: She offers $5,000 lump sum to be safe (slightly above the minimum, showing goodwill). She includes $1,000 (20%) with the offer and will pay the remaining $4,000 within 5 months of acceptance. She does not qualify as low-income, so she also includes the $205 fee. Expected Outcome: The IRS will review Alice’s last 1-2 years of income and possibly future prospects. If her documentation supports that her earning potential is now modest and $200/month is realistic, an offer around $5,000 could be acceptable as it equals her reasonable collection potential. If the IRS thinks she can earn more, they might negotiate a higher offer or longer payment plan. But since she offered roughly her calculated RCP, she stands a good chance of acceptance. Key for Alice is to demonstrate her business downturn is permanent or at least that she won’t suddenly have a big income spike to pay the debt in full. |
| Small Business with Payroll Tax Debt | Situation: XYZ Corp (an LLC taxed as a business) had to downsize and incurred $80,000 in unpaid payroll taxes (Forms 941) over several quarters. The business is still operating but barely breaking even now. The IRS has also assessed the Trust Fund Recovery Penalty on the owner for $50,000 of that payroll tax (withheld employee taxes). OIC Strategy: The business, XYZ Corp, files its own Form 656 for the payroll taxes. In Section 2, they list the EIN and quarters of Form 941 owed. They attach Form 433-B(OIC) showing business assets (a couple of old vehicles, some equipment) and liabilities. The quick sale value of assets might be $10,000, and the business has no significant cash. It can only afford maybe $500/month in future payments. The owner, meanwhile, might separately file an individual Form 656 for the trust fund portion assessed personally (that would be a separate offer covering the Trust Fund Recovery Penalty on the owner’s SSN – a complex aspect, but important since the IRS often wants the responsible person to also settle). Offer Amount: For the business’s offer, XYZ Corp offers $15,000 total. They choose a periodic payment plan, offering to pay $15,000 over 24 months (about $625/month). They include the first $625 with the offer and the $205 fee. For the owner’s personal trust fund liability, suppose he offers a token amount of $5,000 separately (depending on his personal financial situation). Expected Outcome: The IRS will scrutinize business finances – if $15,000 represents the net value of the business assets plus what it can reasonably pay over two years, they might accept it to resolve the corporate debt. Payroll tax debt is serious, but the IRS does compromise it if the business shows it cannot pay and is in compliance now. The trust fund portion on the owner might be settled if his personal finances are similarly tight (or they might insist on at least that portion if the owner has assets). In many cases, a business OIC is accepted only if the business is either closed or has limited prospects, and the owners don’t have means to infuse money. If XYZ Corp’s offer is accepted, it must stay current with all future payroll filings – one slip-up and the deal is off. This scenario shows that businesses can use Form 656, but often multiple offers (business + individuals) are involved when trust fund taxes are in play. |
Note: These examples are simplified and hypothetical. In reality, every OIC is decided on specific facts. But they give a flavor of how different taxpayers might fill out Form 656 and what kind of offers they propose. An unemployed person might offer a very low amount if truly destitute; a self-employed individual will base the offer on reduced income and minimal assets; a business will consider both corporate and personal angles for payroll taxes. Each must still follow the Form 656 process precisely and provide solid evidence of their inability to pay.
Pros and Cons of Pursuing an Offer in Compromise
Is an Offer in Compromise the right move for you or your client? Consider these advantages and disadvantages before committing to the process:
| Pros of an OIC | Cons of an OIC |
|---|---|
| Significantly reduce your tax debt: Settle for less than you owe, sometimes pennies on the dollar, if you truly cannot pay in full. This provides a clean slate and removes the burden of an unpayable debt. | Strict qualification criteria: The IRS accepts only around 30–40% of OIC applications. You must prove inability to pay; many offers get rejected for not meeting the stringent “reasonable collection potential” test. |
| Avoid severe collection actions: While an OIC is pending, the IRS generally halts collections (no new levies or garnishments). If accepted, you avert bank levies, wage garnishments, or asset seizures permanently for the settled debt. | Intrusive financial disclosure: You must divulge detailed financial information (income, expenses, assets, transactions) to the IRS. The process is paperwork-heavy – essentially a full financial audit of your life. If you have significant assets, the IRS will expect you to use them to pay, not forgive them. |
| One-and-done resolution: Once you pay the agreed amount and fulfill terms, the tax debt is forgiven. Any federal tax liens on those liabilities will be released, and you can move forward without that debt hanging over you. | OIC payments and fees are non-refundable: You have to pay the application fee and initial payments upfront, and if your offer is rejected or returned, you don’t get those back (though payments are applied to your tax debt). Plus, the clock for IRS collections was extended while they considered your offer, giving them more time to collect the remaining debt. |
| Fresh start and improved cash flow: With tax debt settled, you can rebuild financially. You’re no longer accruing interest and penalties on that debt. This can free up cash flow that was paralyzed by fear of IRS collections, helping you invest in the future or pay current obligations. | Ongoing compliance required: After acceptance, you must stay tax compliant for 5 years. That means timely filing and paying all taxes. One mistake (like missing a payment or filing late) and the IRS can default the deal, reinstate the full debt, and you lose the benefit. Also, if you usually get tax refunds, you’ll lose any refund for the year your offer is approved (the IRS keeps it). |
| Alternative to bankruptcy or endless payment plans: An OIC can sometimes address tax debts that bankruptcy won’t discharge (like certain recent taxes) or achieve relief faster than a partial payment installment agreement that might run until the collection statute expires. It’s a chance at an immediate reduction rather than dragging out payments or financial hardship. | Time-consuming and complex: The OIC review process can take 6–24 months. It requires patience and careful attention to IRS correspondence. If you’re not well-versed in tax rules, you might need professional help, which can be costly. And during this time, you need to continually prove that your financial situation hasn’t significantly improved, or the IRS might recalculate your offer need. |
In summary, an Offer in Compromise is a powerful tool to resolve tax debts, but it’s not a quick fix or guaranteed. The pros are compelling if you truly can’t pay: you could shed a large liability for a smaller amount and get peace of mind. The cons highlight that the IRS doesn’t give discounts easily – you’ll go through a thorough examination and have to uphold your end of the bargain strictly. Weigh these factors carefully or consult a tax professional to determine if an OIC is your best option or if alternatives might suit your situation better.
Key Terms and Entities Explained
The world of Offer in Compromise comes with its own jargon and important concepts. Here’s a quick glossary of key terms and entities you should know as you navigate Form 656 and the OIC process:
- IRS (Internal Revenue Service): The U.S. federal tax agency that administers and enforces tax laws. In the OIC context, the IRS has authority (under Internal Revenue Code §7122) to settle tax debts for less than owed. Different IRS units handle OICs; most personal offers are evaluated by specialized offer examiners or centralized OIC units.
- Offer in Compromise (OIC): The program through which the IRS settles a taxpayer’s tax debt for less than the full amount. An OIC is a contract between you and the IRS: you promise to pay a certain reduced amount and comply with future tax obligations, and the IRS, in return, forgives the remaining debt if you adhere to all terms.
- Form 656: The official form used to request an Offer in Compromise for reasons of doubt as to collectibility or effective tax administration. This form is the heart of your OIC application, where you detail your personal or business info, tax debts included, offer amount, and payment terms. Form 656-B refers to the OIC booklet that contains Form 656, instructions, and the financial forms.
- Form 433-A (OIC): A specialized Collection Information Statement that individuals (wage earners, retirees, self-employed, etc.) must submit with Form 656. It captures detailed information about your income, expenses, assets, and liabilities. The IRS uses this to calculate how much you could potentially pay. It’s different from the general Form 433-A used for other purposes; the “(OIC)” version is specifically tailored for offers (e.g., it asks for quick sale values of assets, etc.).
- Form 433-B (OIC): The equivalent Collection Information Statement for businesses. A business entity (corporation, partnership, LLC) uses Form 433-B (OIC) to disclose its financial condition (business assets, cash flow, accounts receivable, debts, etc.) when applying for an OIC on business tax debts.
- Reasonable Collection Potential (RCP): An internal IRS calculation of how much they believe they can collect from you over time. It’s essentially net realizable asset value + future income potential. Your offer amount generally needs to meet or exceed your RCP for the IRS to accept the deal. If you offer less than RCP with no special circumstances, expect a rejection or a push to raise the amount.
- Doubt as to Collectibility (DATC): The most common ground for an OIC. It means you can’t pay the full tax debt before the collection statute runs out. In practice, this is demonstrated by your financials showing insufficient equity and cash flow. If DATC is your reason, you focus on showing a low RCP.
- Doubt as to Liability (DATL): A ground for an OIC where you believe you don’t actually owe part or all of the tax. This is relatively rare and handled via Form 656-L, separate from the collectibility offers. No financials are required for DATL offers, because it’s about the correctness of the debt, not your ability to pay. (Example: IRS says you owe $50k from an audit, but you have new evidence the audit was wrong – you might offer a smaller amount to settle because you think the true liability is less.)
- Effective Tax Administration (ETA) Offer: An offer where you can technically full-pay your tax, but doing so would be unfair or cause hardship. There are two flavors: (1) Economic hardship ETA – available to individuals who could pay in theory, but it would leave them unable to meet basic living expenses (often used for elderly or disabled taxpayers living on fixed income with equity in assets like a home). (2) Public policy/Equity ETA – very rare cases where collecting the tax would be viewed as unfair even though the taxpayer has means (example often cited: a taxpayer has enough assets to pay, but those assets are needed for a child’s serious medical care). ETA offers require detailed explanation and supporting proof. The IRS grants these sparingly, but they are important for truly exceptional cases.
- OIC Pre-Qualifier Tool: An online tool on the IRS website that helps taxpayers get a ballpark idea if they might be a viable OIC candidate. By inputting your financial info (income, expenses, assets, debt), it will estimate an offer amount and tell you if you appear to meet basic eligibility. It’s not an official decision, just a guide. It’s useful to avoid wasting time – if the tool shows a required offer much higher than you can pay or that you don’t qualify, you might reconsider applying or adjust expectations.
- Collection Statute Expiration Date (CSED): The date when the IRS’s legal ability to collect a tax debt expires (generally 10 years from assessment). An OIC stops (tolls) this clock while the offer is pending and for any appeals. This means if you spend 1 year in the OIC process and it fails, the IRS now has an extra year to collect that debt. It’s a trade-off you accept in the offer terms.
- Tax Lien: A legal claim by the IRS on your property when you owe taxes. If you have a tax debt large enough, the IRS likely filed a Notice of Federal Tax Lien. An OIC doesn’t immediately remove a lien; the lien remains until the offer is fully paid and completed, at which point the IRS will release it. If the offer is rejected or you default on it, the lien continues as if no offer was submitted (covering the full amount originally owed, minus any payments made). Keep in mind, an accepted OIC does not automatically expunge the record of the lien from credit reports overnight – the lien release will be filed after you fulfill the offer, and you can then ensure it’s reflected on public records.
- Trust Fund Recovery Penalty (TFRP): A personal assessment against individuals (often business owners or financial officers) for the portion of payroll taxes that were withheld from employee wages but not remitted to the government. The TFRP makes that portion of the tax the individual’s liability (even if the business also still owes it). In OIC context, if both a business and an owner owe the same underlying tax via TFRP, each must submit a separate OIC to cover their part. The IRS usually won’t settle the business’s payroll tax debt unless the responsible persons address the TFRP as well. Form 656 can be used by individuals to compromise the TFRP on their personal account.
- Installment Agreement (Payment Plan): Not exactly part of the OIC process, but an alternative. It’s an agreement to pay the tax in full over time (or partially in some cases). Mentioned here because sometimes the IRS may suggest a payment plan if your offer is too low. Unlike an OIC, an installment agreement doesn’t forgive any debt – you eventually pay it (sometimes with some penalty relief). Tax professionals often compare these options when advising on resolution.
- Currently Not Collectible (CNC) Status: Another alternative to an OIC. CNC is when the IRS agrees that you have no ability to pay anything right now – so they temporarily suspend active collection. Interest and penalties still accrue and the debt isn’t forgiven (unlike an OIC), but you get breathing room until your finances (hopefully) improve or the statute runs out. Some taxpayers try CNC first if they can’t get an OIC approved. The reason to mention it: if your OIC is not accepted, CNC might be the fallback. Also, being in CNC status doesn’t automatically qualify you for an OIC, but it’s an indicator you might be a good candidate if you can scrape together an offer amount.
Understanding these terms will help you navigate discussions with the IRS or a tax advisor. Offers in Compromise involve many moving parts – knowing the lingo (like DATC vs. DATL, or what a tax lien implies) ensures you won’t be caught off guard during the process.
Nuanced Comparisons: OIC vs. Other Tax Relief Options
An Offer in Compromise is one of several tools available for resolving a tax debt. It’s important to understand how it compares to other relief options and when it might be preferable:
- Offer in Compromise vs. Installment Agreement: An installment agreement is simply a monthly payment plan to pay the debt (and interest) over time. It’s much easier to obtain than an OIC – in fact, if you owe under $50,000, the IRS will often administratively approve a streamlined payment plan with minimal fuss. However, an installment agreement does not reduce the total debt except potentially by some penalty abatement. You pay the full amount (sometimes with interest reductions if you pay faster). An OIC, by contrast, seeks to reduce the principal owed. So, if you can afford to pay over time, an installment plan avoids the intensive financial scrutiny of an OIC. But if you truly cannot pay it all, an OIC could wipe out the remaining balance once you pay the offer amount. Sometimes tax professionals first try to get clients on an installment plan (to stop collections quickly) and then submit an OIC if they qualify.
- Offer in Compromise vs. Currently Not Collectible (CNC): Both OIC and CNC status are for people who can’t pay. CNC means the IRS agrees you have no disposable income or assets to tap at the moment. Collections are paused, but the debt remains, and the IRS will check back periodically; also the 10-year clock keeps running (except in certain situations, CNC itself doesn’t extend it). OIC requires more effort upfront and some payment, but it permanently resolves the debt if accepted. Think of CNC as a timeout – interest still accrues, and if your situation improves, the IRS will expect payment or will resume collection. OIC is the final settlement – if you can manage to offer something now and want finality, OIC is the goal. Some taxpayers stay in CNC until the collection statute expires (debt falls off), but that’s only if the time left is short or their finances never improve. OIC is often a better solution if you want certainty and closure, and can make the case for it.
- Offer in Compromise vs. Bankruptcy: Bankruptcy can discharge certain older tax debts (typically income taxes that are from returns due at least 3 years ago, filed at least 2 years ago, and assessed 240+ days ago, with no fraud – and payroll taxes or trust fund taxes generally cannot be discharged). If your tax debt meets those criteria, a Chapter 7 bankruptcy might wipe it out entirely without paying anything to IRS (aside from losing any refunds or assets to the estate). Bankruptcy is a legal proceeding with its own costs and consequences (credit impact, potential loss of assets, etc.). An OIC, on the other hand, is purely an administrative negotiation with the IRS. If your debts are largely tax-related and qualify, bankruptcy might eliminate them more completely than an OIC (because OIC will require you pay some portion). But many tax debts do not qualify for bankruptcy discharge (trust fund taxes, recent taxes), so OIC might be the only path to reduce them. Also, if you file bankruptcy, the IRS will not consider an OIC, and if you submit an OIC, you can’t file bankruptcy without withdrawing it – the two processes don’t mix at the same time. For some, the best approach is to consult a professional on whether bankruptcy or OIC (or a combination over time) is optimal based on the types of tax owed.
- Offer in Compromise vs. Partial Payment Installment Agreement (PPIA): A PPIA is a hybrid of sorts: it’s an installment agreement where the monthly payment is set below the amount needed to full-pay the debt by the CSED (collection expiration date). In effect, you pay what you can each month, and by the time the 10-year statute expires, there will be a remaining balance the IRS writes off. This achieves a partial forgiveness without a formal OIC. The advantage of a PPIA is it’s typically easier to get approved than an OIC – you still submit financials, but IRS may be more flexible since they’re not “forgiving” upfront; they just let the clock run out. The downside is you must keep paying until the time runs out, and interest accrues during that period, potentially leaving not much to be forgiven at the end. An OIC would require a lump sum or short-term payments but then you’re done. A PPIA might be suitable if you can’t offer a lump sum for OIC but can pay something monthly – essentially you pay until time up and whatever’s left is cancelled. It’s less well-known than OIC but an important alternative.
- Offer in Compromise vs. Penalty Abatement: Penalty abatement is not a full solution for a large debt, but it can reduce what you owe by removing penalties for reasonable cause or first-time forgiveness. If a chunk of your debt is penalties, abatement might wipe those out. That still leaves tax and interest on tax. Some taxpayers who don’t qualify for OIC might at least reduce their balance via penalty abatement and then do an installment plan for the rest. OIC would address the entire debt (tax, penalties, interest) in one fell swoop, but again, only if you qualify. Sometimes pursuing penalty abatement first can make an OIC more feasible by reducing the debt amount (and thus the required offer). However, if you plan to OIC, you typically include everything anyway; the IRS doesn’t require you to try abatement first.
- Offer in Compromise vs. Innocent Spouse Relief: This is a very different remedy, but relevant if the tax debt is from a joint return with a spouse/ex-spouse and it was primarily attributable to that spouse’s erroneous items. Innocent Spouse Relief can potentially erase your liability for tax that your spouse should have paid/reported. It’s not about inability to pay; it’s about fairness and your lack of knowledge. If applicable, it can eliminate the tax for one spouse entirely. That might be a preferable route if you qualify, rather than paying anything via OIC. Innocent spouse claims are filed on Form 8857, separate from an OIC. In some cases, a person might file innocent spouse relief for part of the debt and an OIC for the portion that remains their responsibility.
The Offer in Compromise is one piece of the tax resolution puzzle. It’s best for situations where the debt is large relative to your assets/income and you meet the strict criteria. If you have more ability to pay, an installment plan is the straightforward path. If you have zero ability even for a small offer, CNC status might keep IRS at bay. If your tax debts meet certain age criteria, bankruptcy could wipe them out faster.
And if your situation doesn’t fit an OIC, sometimes a PPIA can result in a similar end-game of not paying in full. Every option has pros/cons, and they aren’t mutually exclusive – for example, you might do an installment plan for a year, then try for OIC when your financials worsen, or you might get penalty relief and then do OIC on the rest. The key is evaluating your specific scenario, ideally with a knowledgeable tax professional, to choose the right strategy.
Federal vs. State Offer in Compromise Programs
Taxes aren’t only federal – you might also owe state income tax or other state-level taxes. The concept of an Offer in Compromise exists at the state level too, but each state’s program is separate from the IRS and has its own rules. Here’s how federal vs. state OIC programs compare, and some major variations:
- Separate Jurisdictions: An IRS Offer in Compromise only covers federal tax liabilities (income tax, payroll tax, etc. owed to the U.S. Treasury). It does not forgive any state tax debt. If you owe state taxes, you’d need to apply for a state’s version of an OIC separately with that state’s tax authority. Getting a federal OIC does not automatically resolve state debts (and vice versa). However, states often consider a successful IRS OIC as a positive sign when evaluating their own compromise requests.
- Not All States Offer OIC: Unlike the IRS which has a nationwide OIC program authorized by federal law, some states by law do not compromise on taxes except in very limited cases. For example, Texas and Florida have no state income tax (so personal income tax OIC is moot), but even for business taxes, they generally lack formal OIC programs. States like Alaska, Alabama, South Dakota, Montana, and a few others have historically had no statutory OIC process for state taxes. It’s important to check your state’s policies: as of recent counts, a dozen or so states (including some without income tax) have no OIC option, meaning you might be stuck with full payment or bankruptcy options for those state debts.
- State OIC Eligibility: Each state that does allow OIC sets its own eligibility criteria. Often, they mirror the IRS idea of collectibility or hardship, but specifics differ. For example:
- California – California’s Franchise Tax Board offers OIC for individuals and businesses who can’t pay their California income taxes. California requires that the taxpayer has stopped the activity that gave rise to the liability (e.g., business closed or income source gone, or you’re in compliance now). They have their own forms and booklets, similar to the IRS (FTB Form 4905 series for OIC). CA is relatively willing to compromise if you truly can’t pay.
- New York – New York State has an OIC program, but it’s somewhat limited. NY generally will only consider OICs for individual income tax if the taxpayer is insolvent or discharged in bankruptcy, or if collection in full would cause undue economic hardship (somewhat akin to ETA offers). For business sales tax liabilities, often the business must be out of business and the state determines they can’t collect in full. NY has specific forms (Form DTF-5 for financial disclosure, etc.) and a strict interpretation of hardship.
- Pennsylvania – PA allows OICs in some cases, particularly if the tax debtor is insolvent or the liability is of doubtful collectibility. But PA requires you to be current on filings and often mirrors the IRS approach in spirit.
- Illinois – Illinois introduced an OIC program for state taxes in more recent years, focusing on situations of doubt as to collectibility or where there’s a doubt as to liability or where collecting would create hardship. They refer to their statute guiding compromise and have an application form.
- State vs. Federal Offer Amount Differences: States may calculate ability to pay differently. Some states might be more strict on allowable expenses (meaning they think you can pay more), or they might require a higher minimum offer percentage. Example: A state may not allow an offer if they think you have equity in a home that you could borrow against, even if the IRS might allow some equity exclusion in certain cases. Always review the state’s guidelines – they usually publish an OIC booklet or guidance.
- Procedure and Forms: Just as you use Form 656 for IRS, states have their own forms (often found on the state Department of Revenue or Taxation websites). For instance:
- Arizona has a form and booklet similar to the IRS, following ARS §42-1004, and requires certain payments.
- Georgia provides forms and basically expects you to submit an offer if you meet their criteria (they have a process outlined in regulations).
- North Carolina and Maryland have published booklets for OIC.
- Delaware only allows OIC for people in bankruptcy (you’d negotiate as part of bankruptcy essentially).
- Kansas doesn’t call it OIC, but they have some process for settlements under certain conditions.
- Nebraska interestingly by law allows compromise but only if initiated by the state – a taxpayer can’t proactively submit an OIC; essentially the state decides to offer one in special cases.
- State Tax Types: OICs at the state level can cover state income taxes, sales taxes, withholding taxes, etc., depending on the state. Some states might be more willing to compromise one type of tax and not another. For example, states may be reluctant to compromise trust taxes (like sales or withholding taxes that the business collected from customers/employees) similar to the IRS’s stance on trust fund taxes, but it varies.
- Timing with Federal Offer: If you owe both IRS and state, you might wonder which to do first. There’s no one answer. Some advisors suggest tackling the IRS OIC first since the IRS is often the larger creditor and has a formal process; once you have an accepted IRS offer, you can show that to the state as evidence of your limited collectibility. Many states will ask if you’ve done an IRS OIC and what the outcome was. On the other hand, handling both at once is possible (just a lot of paperwork). Be careful: if your state tax agency has more aggressive collections (some are faster to levy than IRS), you might need to address them concurrently or even first to prevent state actions (states aren’t bound by IRS’s pause in collections and vice versa).
- No State OIC? Alternatives: If your state doesn’t allow OIC, options include payment plans (most states offer installment agreements), pleading hardship for a deferral, or in extreme cases, bankruptcy (state taxes can sometimes be discharged in bankruptcy under similar rules as IRS taxes if they are old enough and meet criteria). Some states that lack OIC explicitly might still settle informally if you make a case (for instance, through a collections manager’s discretion or via an offer in a judicial context if the state sues for the tax). It’s much more hit-or-miss without a formal program.
Key takeaway: After you get through the federal OIC process with Form 656, don’t forget your state taxes. Research your state’s Offer in Compromise program (if it exists) by visiting your state’s Department of Revenue/Taxation website. The terminology and forms may differ, but you’ll likely go through a similar exercise of proving inability to pay. Also, maintaining compliance (filings/payments) is just as critical at the state level when seeking a compromise. Each state’s acceptance rates and timeframes will vary, but if you successfully settled with the IRS, you often have a strong case to make to the state, as long as you meet their specific rules.
Now that we’ve covered the ins and outs of IRS Form 656 and related topics, let’s address some frequently asked questions that often come up about filling out the form and the Offer in Compromise process:
FAQs – Filling Out Form 656 and OIC Program
Q: Can I submit Form 656 electronically through the IRS?
Yes. As of 2023, the IRS now offers an online submission option via your IRS online account for individual OIC applications. You can also still submit by mail or fax as instructed.
Q: Do I need a tax attorney or CPA to file an Offer in Compromise?
No. You are not required to hire a professional – many people submit Form 656 on their own using the IRS booklet. However, professional guidance can help avoid mistakes and improve your chances.
Q: Will the IRS keep my refund if I have an OIC pending or accepted?
Yes. If your offer is accepted, any tax refund for that calendar year will be applied to your tax debt (you won’t receive the refund). During the review process, if a refund is issued, the IRS may also apply it to your balance due.
Q: Does an Offer in Compromise affect my credit score?
No. The IRS does not report tax debts or OICs to credit bureaus. However, if a Notice of Federal Tax Lien was filed, that lien is a public record which can appear on credit reports. Once your offer is paid and the IRS releases the lien, the lien record can be updated or removed, potentially improving your credit.
Q: Can a business submit an Offer in Compromise on unpaid payroll taxes?
Yes. Businesses can apply for an OIC for trust fund taxes (payroll withholding) and other business taxes. The IRS will also consider personal Trust Fund Recovery Penalty assessments against responsible owners/officers in parallel. Both the business and individuals may need to settle to fully resolve payroll tax issues.
Q: Will an OIC stop IRS collection actions against me?
Yes. Once the IRS deems your OIC application processable, active collection is typically suspended. This means no new levies or garnishments while the offer is under evaluation. (Any existing liens remain in place, and if you default on offer payments, collections could resume.)
Q: If the IRS rejects my offer, can I appeal the decision?
Yes. You have 30 days from the rejection letter to file an appeal (use Form 13711). An independent IRS Appeals officer will review your case. Often, submitting additional financial info or a higher offer during appeals can lead to a compromise.
Q: Can I apply for an Offer in Compromise while in bankruptcy?
No. The IRS will not consider an OIC if you are in an open bankruptcy proceeding. You must wait until the bankruptcy is discharged or dismissed. Tax debts may be addressed within the bankruptcy, and after that, you can pursue an OIC for any remaining liabilities.
Q: Is there a minimum amount I must offer on Form 656?
No specific dollar minimum, but the offer should generally equal or exceed what the IRS calculates as your collection potential. In practice, offers of $0 or $1 are not accepted unless you have literally no assets and no income prospects. The minimum practical offer is often whatever your disposable asset equity is (even if small).
Q: Does filling out Form 656 extend the time the IRS has to collect my taxes?
Yes. While your OIC is pending (and if you appeal a rejection, during appeals), the collection statute clock is paused. Once the offer is resolved (accepted, rejected, or withdrawn), the clock resumes. If accepted, it won’t matter since the debt is settled, but if rejected, the IRS effectively gained more time to collect in the future.
Q: Will I owe taxes on the forgiven debt if my offer is accepted?
No. Unlike forgiven commercial debt, canceled tax debt is not taxable income. The IRS does not tax you on the amount of tax debt forgiven through an OIC. (For contrast, if a credit card company forgives $10k of your debt, that $10k could be taxable – but when the IRS forgives $10k of tax, they don’t turn around and tax you on it.)
Related reading
- How to Fill Out IRS Form 433-F (w/Examples) + FAQs
- How to Fill Out IRS Form 656-PPV (w/Examples) + FAQs
- How to Fill Out IRS Form 656-L (w/Examples) + FAQs
- How to Fill Out IRS Form 433-A (OIC) (w/Examples) + FAQs
- How to Fill Out IRS Form 433-B (OIC) (w/Examples) + FAQs
- How to Fill Out IRS Form 9465 (w/Examples) + FAQs
- How to Fill Out IRS Form 8300 (w/Examples) + FAQs