Get the free form 656 b 2020-2021

Hi my name is Dave jackal I'm a tax attorney and I'll be your host for this short video on the IRS offer and compromise program first thing we'll look at here is what is an offer and compromise and then we'll take a quick look at what is not offer and compromise is an IRS program that is designed to allow tax payers to reduce their tax debt to a payable amount so if you owe more taxes than you can legitimately pay the offer and compromise program is for you the offer and compromise program is not a solution to every tax problem or everyone with tax debt contrary to what you may see online or a year on TV or on the radio it's not a way for everyone to settle their tax debt for pennies on the dollar assuming that you're in a situation where you owe more taxes than you can pay the next question is is an offer and compromise right for me and the answer is may be an offer and compromise is not the solution for everyone even if you owe more taxes than you can pay there's other issues and options to consider and there's other ways of you know eliminating tax debt that might be better than an offer and compromise for instance the statute of limitations may run out and the IRS won't be able to collect you might be able to discharge the tax in bankruptcy you might be able to get innocent spouse relief get penalties abated and so on there are three types of offers and compromise these are I call them you can't pay you don't owe in special circumstances the can't pay type of offer and compromise is the most common and is formally known as doubt as the collectability the don't owe is a basis and is formally known as doubt is the liability and the special circumstances is formally known as to provoke effective tax administration you can file under any one or all three of these types offers and compromise at the same time so what are the steps in the offer and compromise process well you'll need to complete IRS form six five six that's where you actually make an offer to settle you will come up with a number where you say this is what I am offering the settle also in conjunction with this form you can submit legal arguments for the reduction of your debt and that would be legal basis if you're filing as a doubt as to liability or a dono claim you can file some legal arguments there you can raise issues such as the non collectability of the debt because you may be able to file for a bankruptcy so the IRS ought to accept your offer because otherwise you go to bankruptcy and pay them nothing statute of limitations is coming up those types of things you also have to provide extensive financial data and that will be unformed 433 and on that form you'll actually end up calculating what the value of your assets is and how much you'll be able to pay on a monthly basis going forward and those numbers will be combined and that'll be the basis for the number that you would provide as your settlement offer so the process is more of a formula it's not just hey free...