Want to settle your tax debt for less? Here's how to submit your Offer in Compromise (Form 656) to the IRS.
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Fax numbers are subject to change without notice. Always verify current fax numbers and filing instructions at irs.gov or the IRS Form 656 page before submitting any documents.
IRS Form 656 is the Offer in Compromise application. It lets you propose to settle your federal tax debt for less than the full amount you owe. The IRS evaluates your offer based on your ability to pay, income, expenses, and asset equity. This is a serious financial negotiation — make sure your form is complete and accurate before submitting. For official instructions and the latest version of this form, visit the official IRS page.
Form 656 must be mailed to an IRS Offer in Compromise processing center. The correct address depends on your state and is listed in the Form 656-B booklet available on irs.gov. Include all required forms, the $205 application fee, and your initial payment.
The IRS does not publish a standard fax number for Offer in Compromise submissions. If you need to fax supporting documents to an IRS representative who provided a fax number, you can use usfax.com for delivery confirmation.
Fill out Form 656 along with Form 433-A (OIC) for individuals or Form 433-B (OIC) for businesses. Include the $205 application fee and your initial payment amount. Download the Form 656-B booklet from irs.gov for full instructions.
The Form 656-B booklet lists the mailing addresses for OIC processing centers based on your state. Mail your complete package with payment. Use certified mail with return receipt for proof of submission.
Save your certified mail receipt as proof of your submission date. Stay current on all tax filing and payment obligations while your offer is under review — the IRS will reject offers from non-compliant taxpayers.
If your IRS representative gave you a fax number for supporting documents, use usfax.com to send them with delivery confirmation. No fax machine needed.
Start Sending FreeForm 656 is the Offer in Compromise form. It allows you to propose a settlement with the IRS for less than the full amount of tax debt you owe. The IRS considers your ability to pay, income, expenses, and asset equity to determine if your offer is acceptable.
Form 656 must be mailed to one of the IRS Offer in Compromise processing centers. The correct address depends on your state and is listed in the Form 656-B booklet (Offer in Compromise package). Visit irs.gov for the current booklet and addresses.
The IRS charges a $205 application fee for most Offer in Compromise submissions. You must also include an initial payment with your offer — either 20% of the lump sum offer amount, or the first proposed monthly payment for periodic payment offers. Low-income taxpayers may qualify for a fee waiver.
The IRS typically takes 6 to 12 months to review an Offer in Compromise. During this review period, the IRS generally suspends collection activity. Use certified mail so you have proof of your submission date.
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