How To File Offer In Compromise
May 26, 2010
You will be provided with an IRS package, including the latest version of form 656, forms 433-A and 433-B. The package serves to simplify the complicated procedures of an application.
The package also includes A worksheet and relevant information and instructions. Individual or self-employed taxpayers are obliged to present a collection information statement in form 433-A.
Be sure to prepare a written narrative, concerning your state of affairs and family financial troubles caused by paying the tax in full. Include relevant public policies or equity considerations. Attach an income certification in form 656. Collect all the necessary financial documents and attach them to your application. Check the signature and date. An application fee of $150 is paid in the form of a check or money order. Some taxpayers are eligible for exemption of application fee.
Check Offer in compromise application carefully before you submit it, as any errors lead to delays and rejection. Find a lawyer to assist you in the procedure. You can also use special software. Fill in form 2848, sign it and send to a lawyer since a power of attorney is essential to represent the client before the IRS.
You can find offer in compromise form online, get it from a local IRS office or even order over the phone. Fill in the application and mail it to the concerned office. Residents of the western states should forward their application to Memphis and eastern states to Holtsville, NY.
