www.offerincompromiseform656.com offer in compromise form 656

IRS Policy Statement 5-5-100 states that the IRS will accept an offer in compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential.

see www.offerincompromiseform656.com

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Changes to Form 656 offer in compromise www.offerincompromiseform656.com

The Internal Revenue Service (IRS) has announced the release of Form 656, Offer in Compromise, revision February 2007. The new form retains the taxpayer burden reduction features while adding significant changes as a result of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA). These changes include:  New payment terms and submission rules; Processability checklist, redefined as a result of TIPRA, which assists taxpayers in determining up front if they are eligible for an offer before investing any preparation time; A new matrix to assist in determining the number of Forms 656, $150 application fee(s), and TIPRA payments to submit to the IRS depending on the number of individuals submitting the offer and the types of liabilities being compromised;A checklist which reduces the chance that the application will be returned by the IRS for omissions, as well as a reminder of the necessary documents to include with the application prior to its submission to IRS; Form 656-A, renamed Income Certification for OIC Application Fee and Payment; and Form 656-PPV Offer in Compromise Periodic Payment Voucher.

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offer in compromise form 656 www.offerincompromiseform656.com the new dissipated assets rule

As published in the Internal Revenue Manual 5.8.5.18 909-30-2013) the incllusion of dissipated assets in the calculation of reasonable collection potential is no longer applicable, except in situations where it can be shown the taxpayer has sold transferred, encumbers or otherwise disposed of assets in an attempt to avoid the payment of the tax liability.


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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).

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offer in compromise form 656 www.offerincompromiseform656.com

Form 656 must accompany ever offer in compromise: 1) based on doubt as to collection ability for both individuals and for businesses; 2) based on doubt as to liability

Make sure the Form 656 included all tax years.

There is also a comment section which should be completed to explain the nature of the filing for relief and the reasons that settlement in justified.

www.offerincompromiseform656.co


Alvin S. Brown, Esq.
ab@irstaxattorney.com



www.irstaxattorney.com (212) 588-1113 ab@irstaxattorney.com

Offer in Compromise returns based on submissions "best interests" of the government www.offerincompromiseform656.com

"Best interest" offer in compromise rejections or returns are based on IRM 5.8.7.7.1 (05-11-2011)

The IRS states that this rejection should not be routine.  The primary reason for a rejection in the IRM is the fact that it is highly unlikely the taxpayer will be able to remain in compliance.

IRS offer specialist do not read or follow the IRS.  Largely , they think they have the broad discretion to return on a for reasons not specified in the IRM.

Call for assistance for any return of an Offer in Compromise based on the "best interest" of government.  The odds are high that the rejection is erroneous.

Alvin S. Brown, Esq.
ab@irsgtaxattorney.com

www.offerincompromiseform656.com



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• Use Form 433-A (OIC) for individuals  or 433-B (OIC) for businesses and submite all required documentation as specified on the forms;
• Form 656(s) - individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;

The new filing fee for offers in compromise is $186 application fee (non-refundable)

Be sure to select a payment option

www.offerincompromiseform656.com.  see also www.irstaxattorney.com

 (212) 588-1113 ab@irstaxattorney.com