How to Offer a Tax Settlement to the IRS

When you file your annual income taxes, you may discover you owe additional taxes. You will need to pay immediately to prevent Internal Revenue Service (IRS) collection activity. If you do not, the IRS may file a tax lien against your property to recover the debt. You can submit a tax settlement to prevent this, if you cannot afford to pay the debt in full.

Instructions

1. Contact your tax preparer. The individual or company that filed your income taxes can help offer a tax settlement to the IRS. Tax preparers know your rights as a taxpayer and are familiar with settlement procedures. Your preparer can help obtain, complete and submit your settlement offer.

2. Access irs.gov to continue the process if you have filed your taxes yourself.

3. Download Form 656 "Offer in Compromise." Click on the Forms and Publications link to gain access. Also obtain the instructions --- Form 656-B. Accuracy is vital so the IRS does not reject your submission.

4. Complete and submit the Offer in Compromise. You can find IRS contact information also on irs.gov.

References

• IRS: What You Must Know Before You File an Offer in Compromise

Resources

• Internal Revenue Service