Using IRS Form 656-L to Make an Offer in Compromise

IF you and the Internal Revenue Service disagree oninvolve less bureaucratic red tape.
the amount of your taxes or you do not have enoughComplete the sections 1-3 of IRS Form 656-L, including
money to pay back taxes that you owe, you and theyour name, address, telephone number, and tax
Internal Revenue Service might enter into an Offer inidentification numbers, such as your Social Security
Compromise. If accepted, an Offer in Compromise willNumber and/or business tax identification.
allow you to settle your tax obligation for less than theShow your figure for your Offer in Compromise in
Internal Revenue Service says you owe.Section 4. Remember that a ridiculously low offer will
IRS Form 656-L is used in the situation where yoube immediately rejected. Make your offer reasonable,
wish to make an Offer in Compromise on your taxrealizing that the Internal Revenue Service would
obligations because your taxes were incorrectlyprefer to have all of their money.
assessed. You will use Internal Revenue Service FormCheck the boxes next to the type of tax involved and
656, if your Offer in Compromise is due to the factindicate the years or tax periods pertinent to your
that you cannot afford to pay.Offer in Compromise in Section 5.
You can go to the Internal Revenue Service websiteAssert your position that the assessed tax is incorrect
and download IRS Form 656-L to make am Offer inand attach any documentation that will support your
Compromise.argument in Section 7.
Be sure to review the alternatives to an offer inSign IRS Form 656-L in section 8 and continue to fill out
compromise, which are included with IRS Form 656-L.any relevant information in Sections 9-11.
It is possible that an alternative to an Offer inMail the form to the indicated address.
Compromise may work better in your situation and