Thursday, February 20, 2014

offer in compromise form 656

An offer in compromise is be binding on both the taxpayer and the Government.” Rohn v. Commissioner, T.C. Memo. 1994-244, 1994 Tax Ct. Memo; 3); Harbaugh v. Commissioner,
T.C. Memo. 2003-316, 2003 Tax Ct. Memo

Section 7122 and the regulations thereunder provide the exclusive method of
effectuating a valid compromise of assessed tax liabilities.
Section 301.7122-1(d)(1), Proced. & Admin. Regs., provides that an “offer
to compromise a tax liability pursuant to section 7122 must be submitted
according to the procedures, and in the form and manner, prescribed by the
Secretary. An offer to compromise a tax liability must be made in writing, must be
signed by the taxpayer under penalty of perjury, and must contain all of the
information prescribed or requested by the Secretary.”

 Rev. Proc. 2003-71, sec. 4.01, 2003-2 C.B. 517, 517, provides that an “offer to compromise a tax liability must be submitted in writing on the Service’s Form 656, Offer in Compromise.”
See also Godwin v. Commissioner, T.C. Memo. 2003-289, 2003 Tax Ct. Memo
LEXIS 292, at *32 (“Taxpayers who wish to propose an offer in compromise must
submit a Form 656”.), aff’d, 132 Fed. Appx. 785 (11th Cir. 2005). (212) 588-1113

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