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.

Keep in mind the chances of obtaining an offer in compromise are rather low. The IRS rejects more than half of the applications. Improper filling of forms and income details serve as the main reason here. Be sure to firstly fill in a sample offer in compromise form, and only then ask for an actual form.

You can ask sample offer in compromise forms from tax professionals, publications, and websites. Form 656 is the basic one, necessary for an offer in compromise. You need to fill in your personal details, income sources, assets, and investments. Be very careful when filling in the form, as the application will be cancelled in case of wrong information. Remember to fill in form 433-A (Collection Information Statement) in the same careful way, as it concerns your bank accounts, investments, and even details regarding the spouse.

Find a respectful tax lawyer, certified public accountant (CPA), or enrolled agent (EA) before your apply for an offer in compromise. They will provide you with a sample offer in compromise forms, assist during filling in and declaring your assets and investments. Do not forget to check the estimates and details proposed by a tax professional, as some of them may lack the expertise required for the job.