The Taxpayer Advocacy Panel has released its 2005 Annual Report summarizing its new recommendations for improvements in the way the Internal Revenue Service does business.The report forwarded suggestions to the IRS representing a variety of concerns, including six suggestions regarding refunds and refund anticipation loans, and recommendations to change the instructions for offers in compromise.

The TAP recommended that the instructions for Form 656, Offer in Compromise, "(1) inform taxpayers that an OIC based on doubt as to collectibility will not be considered if the IRS determines that the taxpayer could pay the full tax liability under an installment agreement over the remaining period of the collection statute of limitations, (2) explain how a taxpayer can estimate that capability, (3) more clearly state that an OIC will also be rejected if the IRS determines that the taxpayer has sufficient assets to pay the tax in full immediately or within a short period of time, and (4) exclude distracting information that is not germane to completing the form."

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