| Article Source: MiNeeds.com, where consumers get | | | | Offer in Compromise Booklet. |
| competitive bids from Accountants/CPA’s. Read | | | | 3. Submit all required documentation |
| reviews, compare offers & save. It’s free! | | | | 4. Complete all items on Form 656, Offer in |
| Article Link: | | | | Compromise |
| Tags: irs tax help , offer in compromise , tax help , irs | | | | 5. Include all required fees and payments |
| help , irs forms | | | | 6. Be current with all filing and paying requirements |
| The Form 656-B, Offer in Compromise Booklet (PDF) | | | | (estimated taxes and federal tax deposits) and remain |
| contains information about filing an offer in | | | | current |
| compromise, worksheets, and all forms necessary to | | | | 7. Respond promptly to all requests for additional |
| file an offer in compromise. | | | | information |
| When submitting an offer in compromise (OIC), | | | | 8. Complete all items on Form 433-A or Form 433-B |
| taxpayers must use the most current version of Form | | | | Where to File Form 656 |
| 656, Offer in Compromise (PDF), or Form 656-L, Offer | | | | Residents of: Alaska, Arizona, California, Colorado, |
| in Compromise (Doubt as to Liability) (PDF), depending | | | | Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, |
| on the basis of the offer in compromise. Taxpayers | | | | Nevada, New Mexico, Oregon, Tennessee, Texas, |
| should file Form 656 when there is doubt that the | | | | Utah, Washington, Wisconsin or Wyoming: |
| liability could be collected in full through a lump sum or | | | | If you are a wage earner, retiree, or a self-employed |
| an installment agreement and file Form 656-L when it | | | | individual without employees; then mail Form 656 and all |
| is believed that the tax liability is incorrect. Taxpayers | | | | attachments to: |
| may not file offers concurrently claiming both that the | | | | Memphis Internal Revenue Service |
| tax liability is incorrect along with an inability to pay the | | | | Center COIC Unit |
| liability. | | | | PO Box 30803 AMC |
| In most cases, taxpayers must submit Form 433-A, | | | | Memphis, TN 38130-0804 |
| Collection Information Statement for Wage Earners | | | | If you are other than a wage earner, retiree, or |
| and Self-Employed Individuals, and/or Form 433-B, | | | | self-employed individual without employees; then mail |
| Collection Information Statement for Businesses. | | | | Form 656 and all attachments to: |
| Neither the Form 433-A nor Form 433-B is required | | | | Memphis Internal Revenue Service |
| when a taxpayer submits an OIC based solely as to | | | | Center COIC Unit |
| doubt as to liability. | | | | PO Box 30804, AMC |
| How Many Forms 656 and Application Fees are | | | | Memphis, TN 38130-0804 |
| Required? | | | | Residents of: Arkansas, Connecticut, Delaware, District |
| The general rule when determining how many offers | | | | of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, |
| and application fees are necessary is "one fee and | | | | Kansas, Maine, Maryland, Massachusetts, Michigan, |
| form per entity". The Form 656-B contains an Offer in | | | | Minnesota, Missouri, Nebraska, New Hampshire, New |
| Compromise Application Fee and Payments matrix to | | | | Jersey, New York, North Carolina, North Dakota, Ohio, |
| assist you in determining the number of Forms 656 | | | | Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, |
| and application fees required. | | | | South Carolina, South Dakota, Vermont, Virginia, West |
| Examples: | | | | Virginia, or have a foreign address: |
| A married couple owing the same joint income tax | | | | If you are a wage earner, retiree, or a self-employed |
| liability may file only one Form 656 listing the joint liability. | | | | individual without employees; then mail Form 656 and all |
| One fee of $150 should be attached to the Form 656. | | | | attachments to: |
| A married couple opting to file separate offers to | | | | Brookhaven Internal Revenue Service |
| compromise the same joint liability may do so, but two | | | | Center COIC Unit |
| $150 application fees will be required. | | | | PO Box 9007 |
| When a married couple owes a joint liability and one | | | | Holtsville, NY 11742-9007 |
| spouse also owes an individual (non-joint) liability, two | | | | If you are other than a wage earner, retiree, or a |
| OICs and two application fees are needed. | | | | self-employed individual without employees; then mail |
| A divorced, separated or married couple living apart | | | | form 656 and all attachments to: |
| may still file one From 656 listing their joint liability and | | | | Brookhaven Internal Revenue Service |
| pay only one $150 fee as long as all the taxes owed | | | | Center COIC Unit |
| are joint liabilities. Taxpayers in these situations that opt | | | | PO Box 9008 |
| to file separate offers must pay a $150 application fee | | | | Holtsville, NY 11742-9008 |
| for each offer that is submitted for consideration. | | | | Where to File Form 656-L (Doubt as to Liability) |
| Note: These examples assume that the taxpayers do | | | | Brookhaven Internal Revenue Service |
| not meet one of the exceptions for paying the | | | | COIC Unit |
| application fee: the OIC is filed under doubt as to liability | | | | PO Box 9008 |
| or the taxpayer has completed and attached Form | | | | Holtsville, NY 11742-9008 |
| 656-A and the OIC Application Fee and Payment | | | | In addition to accessing the Form 656 and Form 656-L |
| Worksheet to Form 656. | | | | online, you may obtain it by calling the IRS toll free |
| Keys to Success in the Offer in Compromise | | | | number 1-800-829-3676 or by visiting your local IRS |
| Program: | | | | office. |
| 1. Explore all collection options before submitting an | | | | References/Related Topics |
| offer in compromise | | | | Was the Article Useful? |
| 2. Complete the "Is Your Offer in Compromise | | | | I hope you enjoyed the article! |
| Processable?" checklist located in the Form 656-B, | | | | |