Form 656 Booklet Offer in Compromise
If you are receiving correspondence from the IRS the best way to deal with them is to ask for an offer in compromise. The IRS will send you a booklet where they ask you to list your debt and your income to come up with a solution you tax problem. You can wait for the IRS to send you the booklet, but in the mean time you can download that same booklet from the IRS’ website https://www.irs.gov/pub/irs-pdf/f656b.pdf and you will ahead of the game. Makes sure that you list all of your expenses, don’t leave anything out. Some people make the mistake of not putting anything for enjoyment and relaxation. You should put as much as you normally spend in movies, games, whatever gives you joy, because only by enjoying yourself do you continue to work and give money to the IRS. So make sure that you really make that a priority. If the IRS questions that, you just tell them that without spending money on your enjoyment, you may as well go on welfare, because it’s not worth your effort to put in your hard day’s work.
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