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How is the application fee collected?
The application fee is collected when a taxpayer submits a Form 656.
The general rule is that the IRS needs as many Forms 656 as there are entities
seeking to compromise. A check or money order in the amount of $150 must be
attached to each OIC. [Note: This assumes
that the taxpayer does not meet one of the exceptions for paying the application
fee: 1) OIC filed solely under doubt as to liability, or 2) total monthly income
falls at or below income levels based on the DHSS poverty guideline levels.]
