If the amount of your taxes is disagreed between you and the Internal Revenue Service, or you are unable to pay the whole amount owed, use the right to enter into an Offer in Compromise. An Offer in Compromise allows you settling your tax obligation for less than the Internal Revenue Service says you owe.

Use IRS Form 656-L to make an Offer in Compromise. Use Internal Revenue Service Form 656, if your Offer in Compromise is due to the fact you are unable to pay.

Visit the Internal Revenue Service website and download IRS Form 656-L to make am Offer in Compromise.

IRS Form 656-L includes the alternatives to an offer in compromise. An alternative to an Offer in Compromise can serve as a better option.

Complete the sections 1-3 of IRS Form 656-L, including your name, address, telephone number, and tax identification numbers, such as your Social Security Number and/or business tax identification.

Provide your figure for your Offer in Compromise in Section 4. Your offer should be reasonable, as the Internal Revenue Service still wants to get all their money.

Check the boxes next to the type of tax involved and indicate the years or tax periods pertinent to your Offer in Compromise in Section 5.

State your opinion regarding the assessed tax and provide any documentation that will support your argument in Section 7.

Sign IRS Form 656-L in section 8 and continue to fill out any relevant information in Sections 9-11.

Be sure to mail the form to the indicated address.

Internal Revenue Service Form 656 is used when there are collection issues. Remember you cannot claim that the tax is wrong and that you are unable to pay it simultaneously.