IRS Practice Series: 6 Simple Steps to an Offer-in-Compromise: Completing Form 656

Author: Eva Rosenberg

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

This webcast will discuss the various "how to" gather, understand and present documentation to support your case. The course will guide you through the 433 series of forms and explain when each form is used, what the national standards are and when to use them, when and how you can go beyond those standards and the documentation necessary, and helping you clients "plan their expenses" to get the best deal.

Publication Date: June 2016

Designed For
Any proactive, current or prospective, Circular 230 practitioner that understands the IRS is ramping up the "close the tax gap". Tax practitioners who want to protect their existing clients from IRS' predatory collections action. And tax practitioners who want to grow their business into this rapidly expanding market.

Topics Covered

  • Doubt as to Liability
  • Audit reconsideration
  • Innocent/injured spouse
  • Forged return
  • Doubt as to collectability
  • Effective Tax Administration
  • Valuing assets
  • Minimize the required deposits
  • Departure from IRS standards
  • Collateral Agreements
  • Requirements once OIC is accepted
  • Strategies for OIC payments
  • Appeals

Learning Objectives

  • Identify the fundamentals of determining which type of OIC and how to prepare the OIC and present the offer
  • Recognize how to expand a tax practitioner's practice base to include representation
  • Differentiate the three functions of Revenue Officers in the field
  • Identify the components required when you file an OIC for Doubt as to Liability
  • Describe what happens when an Offer in Compromise will automatically be accepted, whether the IRS wants to accept it or not
  • Recognize the outcome when it comes to Effective Tax Administration (ETA)
  • Recognize how to get the IRS to accept the higher numbers, if your client's expenses are well over the National Standards
  • Identify the proper numbers of documentation to send to the IRS
  • Evaluate the percentage of submitted Offers in Compromise (OICs) the IRS accepts
  • Recognize the level of tax liability taxpayer's file that will be turned over the the Revenue Officers (ROs) in the field
  • Identify the reason the IRS even considers an OIC when they have the power to collect the money, attach assets, levy wages, and bank accounts
  • Differentiate the three types of Offer in Compromise
  • Identify the proper 656 form to work with
  • Recognize which set of expenses the IRS uses when preparing monthly income and expense statement on any version of Form 433
  • Identify acceptable negotiation strategies
  • Differentiate conditions when making a Lump Sum Offer
  • Identify the maximum number of months of cash flow to take into account under the Fresh Start Program


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
IRS Practice Series: Overview of Collection Issues and IRS Practice Series: 10 Steps to Resolving Collection Issues and IRS Practice Series: Hands-on Collections Workshop (or equivalent knowledge)

Advance Preparation

Registration Options

Regular Fee$49

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