Form 656 or Form 656-L, Offer in Compromise, is the most widely known IRS back tax settlement technique. Our previous posting on Form 656, Offer in Compromise, noted the following:
- The qualifications for IRS acceptance of Form 656 are well known. But they aren’t always black and white. They can be blended, or even bent, given the right circumstances.
- Given enough time, planning may be able to mold your circumstances to fit IRS guidelines for Form 656.
- The IRS now accepts far fewer Offers in Compromise.
- Offer mills unethically promote the Offer in Compromise technique as a universal response to back tax cases and there has been a legal backlash against them.
- Businesses must also file Form 433-B with Form 656.
- Individuals must file Form 433-A with Form 656.
- The IRS has intimate knowledge of your finances secondary to the information provided on Form 433-A, Form 433-B and /or Form 656.
- There are alternative techniques for back tax cases.
The Common Paradox with Form 656, Offer in Compromise
You qualify for an Offer in Compromise because you’re in poor financial condition. But this might mean you don’t have money to pay even a “pennies on the dollar” back tax settlement. The IRS may allow you to pay the back tax settlement over time. But more often, these funds are provided by the taxpayer’s family.
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While this is a Wilmington NC CPA firm, we serve a broader geographical base. If you peruse our posts, and like our expertise and proactive attitude, gives us a call at (910) 399-2705. Our boss is a Masters degreed CPA and tax accountant who actually enjoys all the nooks and crannies in the IRS tax regulations. Through the Internet, cell phones, faxes, E-Mail, we offer superior client service regardless of where you live. We’re empathetic and non-judgemental. Our goal is to dispatch your back taxes for the least amount of money with as little stress as possible.
I have a tax IRS tax form that states i owe 3000.00 and i don’t receive that much income although i am working. I would like to know what steps can i take to get this taken care of instead of having to pay the full amount. please contact me at 803-371-6523 or my email latoniathompson34@yahoo.com
Thanks in advance..