IRS Form 656: applying for an Offer in Compromise
Form 656 is the application to ask the IRS to settle a tax debt for less than the full amount. Filing it doesn't mean the IRS will accept the offer, so check eligibility and other options first.
A full review of your situation and realistic options, with the price of any next step in writing. Need it sooner? Rush is $799. Questions first? Call (256) 690-0213.
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Who may qualify
The IRS looks at your income, expenses and asset equity. It generally won't accept an offer if you can pay the debt in full through a payment plan and/or equity in assets. To be eligible you must:
- File all required tax returns
- Make required estimated tax payments
- Not be in an open bankruptcy
- If you're an employer, make required federal tax deposits for the current and last two quarters
The IRS Offer in Compromise Pre-Qualifier gives a first look.
Fees and payments
Every application needs a $205 fee and a first payment, unless you meet the low-income qualifications. With a lump sum offer you pay 20% of the offer when you apply and, if accepted, the rest in five or fewer payments. With periodic payments you pay when you apply and keep paying while the IRS considers the offer.
After you apply
If the IRS processes your application, it suspends most collection, extends the collection period and may file a federal tax lien. You must keep making your offer payments. If the offer is rejected, the fee isn't returned, payments go toward your balance, and you can appeal to the IRS Independent Office of Appeals. If it's accepted, you must meet the terms in Section 7 of Form 656, and liens aren't released until the offer is paid in full.
Before you file: the $599 Assessment
A $599 IRS Situation Assessment reviews your full situation and whether an offer looks realistic, or whether another path such as a payment plan may fit better. Caros Group is not the IRS and can't promise that an offer, or any settlement amount, will be accepted.
Official IRS sources
Offer in compromise (IRS.gov) · Form 656-B booklet (PDF). Reviewed for accuracy: October 2026.
Other forms: Form 433-A · Form 433-F · Form 9465 · Form 2848
Pick the help that fits
You see the price before anything starts. No retainers to get going.
Tax Pro Notice Review & Action Plan
Best if you have one IRS letter and want a clear plan.
- Secure upload of your actual notice
- Reviewed by a tax professional
- Written findings and next steps
- Typically 1–3 business days
- Full $249 counts toward the $599 or $799 Assessment within 30 days
IRS Situation Assessment
Best if you owe, have several letters or unfiled years.
- Full review of your IRS situation
- IRS records reviewed with your OK
- Your realistic options, in writing
- Price for any next step before work starts
Rush IRS Situation Assessment
Best if a deadline is close and you need answers sooner.
- Everything in the Assessment
- Prioritized when a deadline is close
- Price for any next step before work starts
Start small, upgrade anytime: the full $249 counts toward the $599 or $799 Assessment if you upgrade within 30 days. Checkout is secure, through our payment processor.
Not sure which fits? Call (256) 690-0213 or start with the $249 Notice Review. If your situation needs a broader assessment, we explain that and its price before any extra work begins. The reviews are not IRS representation; if representation may fit, its scope and fee are quoted separately in writing.
Exactly what you get for $249
- Review of your actual IRS notice by a tax professional
- What it means, in simple, clear words
- The dates that matter
- What the IRS is asking you to do
- What is still unknown or missing
- Your recommended next steps, in a written action plan
- Typically delivered in 1–3 business days
Professional review, not a promise of any IRS result. The full $249 counts toward the $599 Assessment within 30 days.
Not an anonymous call center. Caros Group is led by founder Chad Caros, CFP®, CDFA®, MBA, with online help across the US.
Meet Chad → · (256) 690-0213From IRS letter to a clear plan in 3 steps
Tell us what you got
Start the $249 letter review, call (256) 690-0213, or upload your notice with the $249 review.
A tax professional reviews it
We read your actual notice and, with your OK, your IRS records. You get the findings in writing.
You choose the next step
We explain the options that may fit and quote any further work in writing first. No pressure, results vary.
Questions people ask
Do you help people outside Huntsville?
Yes. Our help is online, so we work with people across the US and US taxpayers living abroad, including Thailand.
Will you ask for my Social Security number by email or chat?
No. We never ask for it by email, text or chat. If we take on your case, sensitive documents go through the secure Canopy client portal.
Can you promise the IRS will reduce what I owe?
No one honestly can. Every situation is different and results vary. What we can do is explain your options clearly and help you take the next right step.
What does it cost to get started?
A tax professional review of your actual notice with a written action plan is $249, and the full $249 counts toward the $599 or $799 Assessment if you upgrade within 30 days.
How fast is the $249 notice review?
Typically 1–3 business days after you upload your notice.
I haven't filed in years. Is it too late?
It is usually better to start now than wait. We help you see which years matter and the order to file them in.
Call The Caros Group at (256) 690-0213
Let's look at your letter together.
Tell us what the IRS sent. A tax professional will explain it in plain language and show you the options that may fit, with the price in writing first.
Prefer to talk first? Learn about a 20-minute call for $99 with a licensed tax professional: (256) 690-0213.
No pressure. No SSN by email or chat. Results vary.