Sometimes, a taxpayer may wish to change or add additional years to their already accepted Offer in Compromise. This can arise from many different situations, one being a taxpayer’s inability to pay the balance on a subsequent filed tax return when something unforeseen happens.
In order to submit a change to an accepted Offer in Compromise, the taxpayer must send their request to the IRS in writing but another Form 656 is not required and the taxpayer does not have to include a 20% payment with the proposal.
In order to avoid defaulting on your Offer in Compromise, you must act quickly to notify the IRS of your changes. Once the changes have been submitted, an offer specialist will request updated financial information, supporting documents, and new terms to negotiate depending on the taxpayer financial situation.