Glossary

Form 656 – Offer in Compromise

What is Form 656: Offer in Compromise and How Does it Work?

Form 656, formally known as the “Offer in Compromise,” is the application form used by taxpayers to request the IRS to settle their tax debt for a lower amount than what they actually owe. This option is available for taxpayers who meet specific eligibility criteria and demonstrate an inability to pay their full tax liability.

Glossary Article

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