Offer in Compromise

Step 4: Offer-in-Compromise Application

At this point, you have completed your Discovery, determined that an Offer in Compromise is right for you, and competed the necessary financial statements (Form 433-A and/or Form 433-B).

You will now complete an application for the Offer in Compromise program by filling Form 656. You can read the official terms of the Offer in Compromise agreement here.

If you have individual and business tax debt that you wish to compromise, you will need to complete and send two (2) separate Form 656. One form will apply to individual tax debts, while the other pertains to business (corporate, partnership) tax debts.

Your individual share of a partnership’s debt will not be compromised on. Instead, the partnership needs to send in its own Offer in Compromise paperwork.

Download the application

How to complete the OIC Application (Form 656)

The Offer in Compromise application form is fairly straightforward. You will be inputting information that you have already collected from following this Roadmap.

There will be two payment plan options to choose from:

For step-by-step instructions on how to fill out the Offer in Compromise application, contact Transaccts for pre-recorded video tutorials.

You (and your spouse, if applicable) must sign under Section 8.