Understanding Form 656 and Mastering its Completion for an OIC Submission
When dealing with tax debts, individuals or businesses struggling with financial obligations may find relief through the Offer in Compromise (OIC) program offered by the Internal Revenue Service (IRS). The OIC program allows taxpayers to settle their tax liabilities for less than the total amount owed. To initiate this process, one must submit a comprehensive and accurate Form 656, also known as the Offer in Compromise application. In this article, we will delve into the details of Form 656, exploring its purpose, requirements, and the essential steps to complete it effectively for a successful OIC submission.
Understanding the Purpose of Form 656
Form 656 serves as the official application for individuals or businesses seeking an OIC from the IRS. It provides detailed information about the taxpayer's financial situation, supporting their request for a reduced settlement amount. The purpose of Form 656 is to...