WARNING!!!
The attached Form 656 is not a standalone form and is intended for tax professional use only. Individuals
requesting consideration of an offer must use Form 656B, Offer in Compromise, which
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Instructions and Help about IRS 656
How to edit IRS 656
How to fill out IRS 656
Instructions and Help about IRS 656
How to edit IRS 656
To edit IRS 656, you can utilize pdfFiller's features to modify text directly on the form. This allows you to ensure all necessary fields are filled accurately before submission. Open the form in pdfFiller, click on the areas you wish to edit, and input the correct details. Once all edits are made, you can save your changes for submission.
How to fill out IRS 656
Filling out IRS 656 requires understanding its components and instructions clearly. Begin by downloading the form from the IRS website or directly through pdfFiller. Ensure that you have all required information at hand, such as your tax ID and financial details. Complete each section as directed, avoiding any omissions or inaccuracies to prevent processing delays.
Latest updates to IRS 656
Latest updates to IRS 656
As of October 2023, IRS 656 has not undergone major revisions, but it's essential to check the IRS website for any upcoming changes that could affect filing practices. Updates related to payment options and submission protocols could potentially impact users, so staying informed is crucial.
All You Need to Know About IRS 656
What is IRS 656?
IRS 656 is the official form used by taxpayers to propose an Offer in Compromise (OIC) to the IRS. This form allows eligible individuals to negotiate a settlement for their tax debts, offering a possibility to pay less than what is owed when paying the full amount would cause financial hardship.
Who needs the form?
Taxpayers who owe federal taxes and are struggling to pay their dues might need IRS 656. It is particularly relevant for individuals facing financial difficulties that impede their ability to pay the full tax obligation. Business owners and self-employed individuals can also use this form if they qualify for an Offer in Compromise.
Components of the form
The components of IRS 656 include various sections where you must provide personal identification information, tax debt details, and a description of your financial situation. The form also requires you to specify the amount you are offering to pay and the rationale for your Offer in Compromise. Completing each section thoroughly is vital for the IRS to assess your offer effectively.
What information do you need when you file the form?
When filing IRS 656, you will need various pieces of information, including your tax identification number, the amount of tax owed, and financial details such as income and expenses. Accurate documentation supporting your financial claims will also be necessary for the IRS to review your offer favorably.
Where do I send the form?
Once completed, IRS 656 should be sent to the address specified in the form's instructions. This usually depends on your state of residence and whether you are including a payment with your submission. Always refer to the latest IRS guidelines to ensure your form is sent to the correct address.
What is the purpose of this form?
The purpose of IRS 656 is to formalize a taxpayer’s request for an OIC. By completing this form, individuals can present their case for a reduced tax liability based on their current financial situation. It serves as a mechanism for tax relief, aimed at helping those in financial distress to settle their debts for less than the total amount owed.
When am I exempt from filling out this form?
You may be exempt from filling out IRS 656 if you are under an existing payment plan with the IRS or if the amount you owe is below a certain threshold. Additionally, those who qualify for currently not collectible (CNC) status should consider their situation before filing an OIC, as it may not be necessary.
What are the penalties for not issuing the form?
If you do not submit IRS 656 when required, you risk continued tax collection actions from the IRS, including liens or levies. Additionally, failure to file the form can result in missed opportunities for tax relief through an offer. Being proactive about submitting the form can prevent complications down the line.
Is the form accompanied by other forms?
IRS 656 is often accompanied by Form 433-A or Form 433-B. These are financial disclosure forms that provide detailed information about your ability to pay your tax debts. Submitting these accompanying forms helps to establish your financial position and supports your request for an OIC.
FAQ about IRS 656
What should I do if I made a mistake after submitting IRS 656?
If you discover an error after submitting IRS 656, you can file an amended form to correct the mistake. Be sure to indicate that it is a corrected submission clearly. You may also want to keep records of your original and amended submissions for your files, as they could be needed for future reference.
How can I track the status of my IRS 656 submission?
To track the status of your IRS 656 submission, you can use the IRS's online tools. You'll typically need your identifying information and submission details. Regularly checking the status will help you confirm if the IRS has received and processed your form without any issues.
What common errors should I avoid when submitting IRS 656?
Common errors when submitting IRS 656 include incorrect taxpayer identification numbers and omissions of necessary signatures. Double-check all entered information and ensure you've followed any specific instructions provided for the form to minimize rejection risks.
Are electronic signatures accepted for IRS 656?
Yes, electronic signatures are accepted for IRS 656 under specific conditions. Ensure you follow the IRS guidelines for e-signatures and maintain documentation as needed to comply with legal standards for authenticity.
Use this catalog to find any type of IRS forms. We've gathered all of them under this section uncategorized to help you to find a proper form faster. Once you spot it on this list, have a look at the versions and schedules you might need as attachments. All returns are available for 2016 and for previous fiscal years.
