June 1, 2022 2:34 am

New OIC Booklet for 2022

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles a taxpayer’s tax liabilities for less than the full amount owed. Taxpayers who can fully pay the liabilities through an installment agreement or other means generally won’t qualify for an OIC. Individuals and businesses that want to submit an offer in compromise should use the 2022 edition of Form 656 booklet. It contains all the necessary forms to submit an offer. If you’re thinking about submitting one, check out the IRS’s Offer in Compromise Pre-Qualifier Tool to determine your eligibility.

Tax Glossary

Installment sale

A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.

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