You’ve always done your own taxes because an accountant costs so much. Now, the IRS says you owe a couple of grand!
You’re not alone in your IRS woes. A 2019 survey found that 1 in 5 Americans believed they would owe the IRS money.
One of the things you can do to reduce the amount you owe is to fill out an offer in compromise form. Keep reading to learn everything you need to know about this IRS form and how to fill it out and get out from under your mountain of debt.
Who Can File an Offer in Compromise Form and When?
If you’ve ever filled out a tax form, you know how painful they get. The last thing you want to do is fill out more IRS forms than you need to. In the case of form 656, there are 3 main reasons to request a tax compromise.
- You claim that the tax liability isn’t yours to pay
- You claim an exceptional circumstance that prevents you from paying the debt
- There’s no way you could ever pay the debt
If one of these three situations apply to you, a form 656 could help you reduce your tax burden.
How Do You Fill Out the Form?
When you look up the form online, you’ll see an accompanying booklet that explains every step of the form to help you fill it out the right way. Follow this booklet to the letter or the IRS will reject your request!
This IRS form gets pretty complicated and confusing. If the tax form verbiage looks like greek to you, or if you want to make sure your form gets completed the right way, you could hire a tax professional to help you with IRS oic services. That way, you have the best shot at getting approval from the IRS.
What Do You Do When You’re Done?
When you’re confident that the form is complete and accurate, it’s time to submit it! You can’t file this form online, though. You’ll need to mail this on to the IRS office designated for your state.
Make sure to include all parts of the form and any fees or your first payment with your documents to give yourself the best chances of approval.
In This World, the Only Certainties Are Death and Taxes
Life happens and sometimes that means your financial situation gets a little more complicated. Unpaid taxes collect penalties and interest faster than you think. Before you know it, your tax bill has gotten way out of hand!
If you think you qualify to use form 656, it could help save you a good chunk of money on your tax bill. The worst thing that could happen is the IRS denies your compromise request.
We hope you enjoyed reading this article and that you learned a few things about the offer in compromise form. For more fascinating articles about personal life issues, business, and much more, check out the rest of our blogs today!
