The IRS adds New How-To Videos for Offers in compromise


The IRS announced new how-to video series enabling taxpayers to avoid potential scams by considering and applying for an Offer in Compromise (OIC) themselves have been added. An offer in compromise allows a taxpayer to settle a tax debt for less than the full amount you owe if you qualify.

Hopefully taxpayers can avoid paying excessive fees to companies who promise to lower taxes to pennies on the dollar.

OIC video playlist provides: (1) an overview of the OIC process, forms and pre- qualifier tool for help in getting started; (2) step-by-step walkthroughs of Forms 433 – A & B OIC, which are known as “collection information statements” and needed for individual and business-related offers; (3) a step-by-step example of how to complete the OIC application, Form 656; and (4) a finalizing checklist to ensure everything needed is included to submit a valid offer. [IR-2021-229 (Nov. 17, 2021)]