IRS Form 656, Offer in Compromise
Form 656 is the official form that must be used to submit an Offer in Compromise to the IRS. The IRS will not consider an Offer in Compromise submitted on any other form. The form itself spells out all of the requirements and contingencies associated with an Offer in Compromise. The form must be filled out to include the type of tax to be compromised (income tax, payroll tax, tax penalties, etc.), the relevant tax periods or years, the grounds for making the offer and the amount offered. Usually, Form 656 must be submitted with a Collection Information Statement and a $150 processing fee.
