- Instructor: Attorney Bob Schaller
- Lectures: 5
- Quizzes: 1
Form 656, Offer in Compromise.
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax liability for payment of less than the full amount owed. IRM § 5.8.1.2.1 (09-23-2008); Adamowicz v. US, 08-888C, Pg. 5 (D.C. Ct. Fed. Cl. 11/21/2011) (Offer in Compromise) and 26 U.S.C. § 7121 (closing agreements) and their regulations comprise the exclusive framework for the IRS and taxpayers to settle tax liability. Benson v. US, 120 F.3d 270, 270 (10th Cir. 1993); Adamowicz v. US, 08-888C, Pg. 4 (D.C. Ct. Fed. Cl. 11/21/2011); see also Botany Worsted Mills v. US, 278 U.S. 282, 288-89 (1929) (“We think that Congress intended … to prescribe the exclusive method by which tax cases could be compromised.”). An Offer in Compromise is a way for the IRS to recoup a portion of the monies owed by a taxpayer unable to pay the back-taxes in full. IRM § 5.8.4.1.1 (01-18-2018).
Video Overview
Overview of Form 656
Sections 1 thru 3
Sections 4 thru 6
Sections 7 thru 9
Quiz
Reviews
Tax Law
The IRS will evaluate Form 656 (and supporting form(s) and documents) to determine the offer’s processability, the taxpayer's ability to pay, and the taxpayer's foreseeable future earnings. Therefore, it is imperative that the taxpayer be thoroughly familiar with Form 656 so that it is completed accurately. This course’s line-by-line analysis of Form 656 will enhance the taxpayer’s familiarity and accuracy.
