Tips on Self-Help for Offer in Compromise - IRS releases new Form 656-B Offer in Compromise Booklet

Below is the direct quote of the announcement on the IRS's new Offer in Compromise Booklet.



for those of you who have little income and cannot afford to hire an Enrolled Agent or Tax Attorney - you may want to visit the irs.gov and put in "Form 656-B" into the search box.



Download, read and then re-read the booklet before taking any actions. If you don't understand a section of the booklet, call the IRS and ask for clarification, They will not provide legal advise, however, they may help you with direct question pertaining to the instruction booklet.



Before you can file an Offer in Compromise (OIC), you will need to fill all of your past due tax returns.



IRS -July 8, 2009 - The Internal Revenue Service has released the new Form 656-B, Offer in Compromise Booklet, and the revised Form 656, Offer in Compromise.


The new Form 656-B contains all of the forms and instructions necessary to file an offer in compromise. The revised Form 656 has been slimmed down to four pages and now only includes the four-page offer-in-compromise application. All of the worksheets, checklists and instructions previously found in Form 656 can now be found in Form 656-B. The availability of the two forms allows taxpayers and practitioners to easily access the offer-in-compromise application without printing or sorting through the offer booklet.



The new Form 656-B contains all forms and instructions necessary to file an offer in compromise, including:


A checklist to determine if the offer can be processed.


The revised Worksheet to Calculate an Offer Amount. The worksheet was revised to be used with the new Form 433-A (revision Jan. 2008).


Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, revision Jan. 2008, and Form 433-B, Collection Information Statement for Businesses, revision Jan. 2008.


A revised IRS Offer in Compromise Low Income Guidelines table based on the 2009 U.S.



Department of Health and Human Services (HHS) standards.


A revised Form 656-A, Income Certification for Offer in Compromise Application Fee and Payment.


The Offer in Compromise Summary Checklist to ensure all necessary information has been reviewed and the appropriate forms have been completed.

Form 656 (PDF) and Form 656-B (PDF) are available on IRS.gov in the Forms and Publication section, at the IRS Taxpayer Assistance Centers and by calling the IRS toll free at 1-800-TAX-FORM (1-800-829-3676).......###