FORM 656-B, OFFER IN COMPROMISE BOOKLET REVISION:

The IRS recently released its April 2023 version of Form 656-B, Offer in Compromise Booklet. Offers in compromise give taxpayers the opportunity to settle their tax debts for less than the full amount they owe once they’ve exhausted all other payment options.

Taxpayers and small businesses should always download and use the most current version of this form to avoid processing delays. The booklet also includes every form taxpayers must complete as part of the OIC process and is now available in Spanish.

Check out IRS Tax Tip 2023-58 that explains the OIC process in detail including how to:

• Avoid paying an OIC application fee if a taxpayer qualifies as low-income (as defined by Form 656)
• Confirm if a taxpayer is eligible to file an OIC and calculate a preliminary offer amount using the OIC Pre-Qualifier Tool