IRS Releases New Offer in Compromise Form

The IRS has released a new offer in compromise form for doubt as to collectibility. The new Form 656 can be found here.  The offer in compromise booklet has a new Form 433-A (OIC) to be used soley for an offer.

Offers in Compromise

The IRS has issued a memorandum (Control Number SBSE-05-0209-006 which can be found at: http://www.irs.gov/pub/foia/ig/sbse/sbse-05-0209-006.pdf) as interim guidance for an additional review which will be conducted on offer in compromise cases that meet specific criteria. The purpose of the additional review is to confirm the value of the real property and ensure that the reasonable collection potential has been properly determined. The IRS advises that these procedures are meant to supplement; not replace, the financial analysis and review provisions of the Internal Revenue Manual. The memo advises that all IRS employees should be sensitive to the current economic conditions that may be affecting taxpayers while investigating the acceptability of an offer.