Advocacy

In some cases, small business owners need assistance to resolve disputes involving the payment of income or payroll taxes. The following are some resources to assist you in getting help.

Copies of Transcripts and photocopies of returns

Tax return transcript is a printout of most lines from the original return. It is commonly used at amend a return, answer a notice from the IRS, meet information requirements for college grants, loans, or social service agencies. A tax account transcript also shows the adjustments made to the account after the return was filed. To get a free transcript, dial 1-800-829-1040.

You can also request a transcript of a tax return. You must mail a Form 4506-T, Request for Transcript of Tax Return. This form is available on-line at http://www.irs.gov/ or by calling 1-800-829-3676. The taxpayer signature is required. The transcript should arrive in the mail within 10-15 days of IRS receipt of the request.

If the actual return is being requested, you must complete a Form 4506, Request for Copy of Tax Return. A $39 fee is charged per return. Allow 60 days from the date of IRS receipt to receive a photocopy. You must allow at least 6 weeks after the original return is filed before requesting a copy or other information. Information may not be available for returns filed more than 6 years ago.

Offer in Compromise

Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability. Under certain circumstances, the IRS has the authority to settle federal tax liabilities by accepting less than full payment. To submit an OIC, a taxpayer must use the May 2001 version of the Form 656 Offer in Compromise package.

All taxpayers who file an OIC will have to pay the application fee with their submission unless the offer is based solely on doubt as to liability or the taxpayer’s total monthly income falls at or below income levels based on the Department of Health and Human Services poverty guidelines. In November 2003, the IRS began charging a $150 application fee for the processing of offers in compromise.