Updated September 2026
To file an offer in compromise you need Form 656, a signed Form 433-A (OIC) or 433-B (OIC), and copies of the records behind every number on it: recent pay stubs, three months of personal bank statements (six for a business account), investment, retirement and loan statements, proof of other income, and the $205 application fee plus initial payment unless you qualify as low-income. The checklist below follows the attachment list in the current Form 656 booklet (Rev. 4-2026). The IRS asks for copies, never originals.
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Proof that every required return is filed
Filing compliance comes before everything else. The Form 656 booklet (Form 656-B, Rev. 4-2026) says you must have filed all legally required returns, received a bill for at least one tax included in the offer, and made the current year’s required estimated payments. Business owners with employees must also be current on federal tax deposits for this quarter and the two before it.
If you’re missing returns, the IRS keeps the initial payment, applies it to what you owe, and returns the offer. The checklist also asks for a complete copy of any return filed within 10 weeks of submitting the offer. See our unfiled returns page.
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Your most recent pay stubs
Form 433-A (OIC) asks for copies of the most recent pay stub or earnings statement from each employer. The IRS uses these to calculate your monthly income, which feeds the “future remaining income” part of the offer formula.
Get a stub that shows year-to-date figures if you can; it shows overtime, bonuses and deductions more clearly than a single pay period. If your pay varies from month to month, gather several so you can explain the average. Self-employed people document income with business records instead (see below).
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Three months of personal bank statements (six for a business)
The Form 433-A (OIC) attachment list asks for complete statements for the three most recent months for each personal bank account. If you operate a business, include the six most recent complete statements for each business bank account.
“Complete” means every page, including the ones that say “this page intentionally left blank.” The IRS compares deposits against the income you report, so be ready to explain transfers between your own accounts and any one-time deposits such as loans from family.
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Investment and retirement account statements
Include the most recent statement for each investment and retirement account: brokerage accounts, IRAs, 401(k) plans and similar. These count as assets in the offer calculation, and the form allows for a reduction from current market value to account for potential taxes and early-withdrawal penalties.
Be careful about cashing out retirement savings to fund an offer. The booklet warns that using an IRA or 401(k) may create a new tax bill, and it says to talk to the IRS or your tax advisor before you do.
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Records of any digital assets
The April 2026 Form 433-A (OIC) asks for copies of all documents and records showing digital assets you currently hold, and it lists recurring capital gains from selling digital assets as income. That means exchange statements or wallet records showing holdings and values.
Leaving out an asset is one of the fastest ways to lose credibility with the offer examiner. The form is signed under penalties of perjury, so list every wallet and exchange account, even small or dormant ones, with its current value.
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Statements for every other income source
The form wants the most recent statement for each other source of income. That includes pensions, Social Security, rental income, interest and dividends (including from a related partnership, corporation or LLC), child support and alimony received, royalties, gambling income and rent subsidies.
It also names gig and platform income directly: sharing-economy work through apps such as Uber, Lyft, Airbnb or VRBO, and income earned through any digital platform. If you drive or rent part-time, bring the platform’s annual summary and recent payout statements.
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Loan and mortgage statements
Bring the most recent statement from each lender on secured loans, such as a first or second mortgage or a vehicle loan, showing the monthly payment, payoff amount and balance. The IRS uses these to work out your equity in the home or car, which is counted in the offer.
Not every payment counts as an allowable expense. The booklet says the IRS generally won’t count private school tuition, college expenses, charitable contributions or payments on unsecured accounts, such as credit cards, in the expense calculation.
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Business records, if you’re self-employed or own a business
If you or your spouse own part of a business other than a sole proprietorship, you’ll need a completed Form 433-B (OIC) for that business as well. For business income and expenses, the forms let you average the most recent 6 to 12 months of receipts, invoices or profit and loss statements.
Also prepare a list of accounts or notes receivable, if you have any. Money customers owe you is an asset in the IRS’s eyes, even if you haven’t collected it yet.
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Court orders and state tax records
If you claim child support or alimony payments as an expense, attach the court order. If you owe state or local tax, include verification showing the total delinquent amount and your monthly payment, so the examiner sees the full picture of what you already pay.
If you have an interest in a trust, include the trust documents. The form also asks whether funds are held in trust for you by a third party, and whether you hold assets or real property outside the U.S.
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Evidence of special circumstances
Form 656 has an “Explanation of Circumstances” section, and the attachment list asks for documents that support whatever you describe there. Think medical records and bills for a serious illness, proof of a disability, or evidence of a job loss or business closure.
This matters most if you offer less than the amount the form calculates. The booklet’s checklist asks whether you described those special circumstances and supported them with documents. Without that, an offer below the calculated minimum is unlikely to succeed.
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Form 2848 for your representative
If an attorney, CPA or enrolled agent will handle the offer, the attachment list says to include Form 2848, Power of Attorney and Declaration of Representative, unless a current one is already on file. List every year and form in the offer, and include the current tax year.
If you only want someone to receive your information, not represent you, the checklist points to Form 8821 instead. A missing or incomplete 2848 means the IRS can’t discuss the offer with your representative.
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The application fee and initial payment
For 2026, IRS.gov lists a $205 non-refundable application fee. You also send an initial payment: for a lump-sum offer, 20% of the offer amount, with the rest paid in 5 or fewer payments within 5 months of acceptance; for a periodic offer, the first monthly payment, with the rest paid within 6 to 24 months. Pay by EFTPS, your IRS Online Account, or a separate check to the “United States Treasury” for each.
If you meet the Low-Income Certification guidelines printed on Form 656, send no money at all.
Before you mail anything
- Run the IRS Offer in Compromise Pre-Qualifier to see whether an offer is realistic. IRS.gov says the IRS generally won’t accept an offer if you can pay in full through an installment agreement or equity in assets.
- Pull your IRS transcripts so the years and balances on Form 656 match the IRS’s records.
- Keep a full copy of the package. Reply quickly to any IRS request for more information: the booklet says a late reply gets the offer returned without appeal rights.
For how the amount is calculated, see our offer calculation guide. If you want help, our list of the best offer in compromise help services compares firms, and Global Gate Tax Relief offers a free consultation at 1-877-800-8180.
Frequently asked questions
Per Form 433-A (OIC) (Rev. 4-2026), the three most recent complete months for each personal account, and the six most recent complete statements for each business bank account.
No. IRS.gov describes the $205 application fee as non-refundable. The booklet says initial payments are generally not returned either; they are applied to your balance if the offer isn’t accepted.
Yes. The April 2026 booklet says individuals can prepare and submit an offer, and make the payments, through their IRS Individual Online Account. If you apply online, don’t also mail a paper copy.
The booklet says the IRS may keep refunds for returns assessed before the offer is accepted and apply them to your balance. A kept refund doesn’t count as a payment toward the offer amount.
No. The booklet states that an offer does not stop interest and penalties from accruing while it is considered.
Related guides and services
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This guide is general information, not tax or legal advice. Tax rules and IRS procedures change; check the linked IRS sources or speak with a licensed professional about your situation. Individual results vary.