WARNING The attached Form 656 is not a stand-alone form and is intended for tax professional use only. Make checks payable to the United States Treasury and attach to the front of your Form 656 Offer in Compromise. I accept the waiver of the statutory period of limitations on assessment for the Internal Revenue Service as described in Section 7 p. Signature of Authorized Internal Revenue Service Official Title Date mm/dd/yyyy Privacy Act Statement We ask for the information on this form to carry...out the internal revenue laws of the United States. Individuals requesting consideration of an offer must use Form 656 B Offer in Compromise which may be found under the Forms and Pubs tab on www.irs.gov. Completed financial statements and required application fee and initial payment must be included with your Form 656. This information will be used to administer and enforce the internal revenue laws of the United States and may be used to regulate practice before the Internal Revenue Service...for those persons subject to Treasury Department Circular No. 230 Regulations Governing the Practice of Attorneys Certified Public Accountants Enrolled Agents Enrolled Actuaries and Appraisers before the Internal Revenue Service. Failure to include the required information will delay consideration of your offer. Form Department of the Treasury Internal Revenue Service Offer in Compromise April 2023 To Commissioner of Internal Revenue Service IRS Received Date In the following agreement the...pronoun we may be assumed in place of I when there are joint liabilities and both parties are signing this agreement. To enforce the regulation as a contract term I agree that I cannot file an amended return for the tax years listed on Form 656 after the offer is accepted. Further I agree that I will not file an amended return for the tax years listed on Form 656 after I have submitted my offer and while my offer remains pending see section 7 j below with the Service. I submit this offer to...compromise the tax liabilities plus any interest penalties additions to tax and additional amounts required by law for the tax type and period s marked in Section 1 or Section 2 below. Did you use the Pre-Qualifier tool prior to filling out this form Locate the tool on our website at IRS*gov/OICtool or by scanning the QR code on your smart device Yes No Note The use of the Pre-Qualifier tool is not mandatory before sending in your offer. Section 1 Individual Information Form 1040 filers If you...are a 1040 filer an individual with personal liability for Excise tax individual responsible for Trust Fund Recovery Penalty self-employed individual or individual personally responsible for partnership liabilities you should fill out Section 1. Make sure to sign and date the Warning The IRS will not compromise any amounts of restitution assessed by the IRS* Any liability arising from restitution is excluded from this offer. Also the IRS will not compromise any liability for which an election...under IRC 965 i is made such liabilities are excluded from this offer.
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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 Form 656, you can use a PDF editor like pdfFiller, which allows you to fill in information, correct errors, or make updates directly on the form. Begin by uploading the form to the platform, then access the editing tools to input your data. Once changes are made, ensure that you review the form for accuracy before finalizing your submission.
How to fill out IRS 656
Filling out IRS Form 656 requires accurate information about your financial situation, including your income and expenses. Start by entering your personal identification details, then provide a thorough breakdown of your assets and liabilities. Make sure to double-check all entries, as inaccuracies can delay processing or lead to denial of your request.
Latest updates to IRS 656
Latest updates to IRS 656
As of 2023, the IRS has maintained the structure of Form 656 but may update tax-related terms and specific figures. Stay informed by checking the IRS website or consulting a tax professional for any changes to the form or its requirements.
All You Need to Know About IRS 656
What is IRS 656?
What is the purpose of this form?
Who needs the form?
When am I exempt from filling out this form?
Components of the form
Due date
What are the penalties for not issuing the form?
What information do you need when you file the form?
Is the form accompanied by other forms?
Where do I send the form?
All You Need to Know About IRS 656
What is IRS 656?
IRS Form 656 is an application for an Offer in Compromise (OIC). This form allows taxpayers to propose a settlement for less than the total amount owed to the IRS for unpaid taxes. It serves as a formal request for consideration of financial hardship or other mitigating circumstances impacting the taxpayer's ability to pay the full tax amount.
What is the purpose of this form?
The primary purpose of IRS Form 656 is to allow individuals and businesses to negotiate a lower tax liability with the IRS. By filing this form, taxpayers indicate their financial situation and present evidence that justifies a compromise offer. This can be particularly beneficial for those facing significant financial difficulties.
Who needs the form?
Taxpayers who owe more in taxes than they can afford to pay may need to file IRS Form 656. This includes individuals facing economic hardships, businesses unable to meet their tax obligations, or anyone who believes they can significantly reduce their overall tax liability through an OIC settlement.
When am I exempt from filling out this form?
Taxpayers may be exempt from filing Form 656 if they do not owe any taxes, have already settled their tax debt, or do not meet other qualifications set by the IRS for the Offer in Compromise program. Additionally, if a taxpayer has filed for bankruptcy, they may have to apply through different means.
Components of the form
IRS Form 656 consists of several key components, including personal identification information, detailed financial disclosures concerning assets, liabilities, income, and expenses, as well as the proposed offer amount. Completing all sections accurately is crucial for the IRS to evaluate your request effectively.
Due date
There is no specific due date for filing IRS Form 656; however, it should be submitted as soon as possible after determining that an Offer in Compromise is appropriate. It is advisable to file the form during tax season to align your claims with income and tax records.
What are the penalties for not issuing the form?
Failure to submit IRS Form 656 when necessary can lead to severe penalties, including continued accrual of interest and late fees on unpaid taxes. The IRS may also pursue other collection methods such as wage garnishment or liens against your assets if a valid offer is not presented.
What information do you need when you file the form?
When filing IRS Form 656, gather comprehensive financial information including your income statements, expense reports, asset valuations, debt records, and tax payment history. Accurate documentation will support your offer and assist the IRS in evaluating your financial position.
Is the form accompanied by other forms?
Form 656 is typically accompanied by Form 433-A (OIC) or Form 433-B (OIC), which provides deeper insight into a taxpayer's financial situation. These forms allow the IRS to assess the taxpayer's ability to pay and the justification for the offered compromise amount.
Where do I send the form?
IRS Form 656 should be mailed to the appropriate address specified on the form's instructions. The address may vary based on whether the payment is included with your offer or if you are applying for a low-income waiver. Check the form's instructions to verify the correct mailing address.
FAQ about IRS 656
What should I do if I need to correct an error on my IRS 656 form after submission?
If you need to correct an error on your submitted IRS 656 form, you should file an amended IRS 656 with your corrections explained clearly. Make sure to keep a copy of your current and amended submissions for your records. Tracking updates on your amended form can help you ensure that your corrections are processed correctly.
How can I check the status of my IRS 656 submission?
To verify the status of your IRS 656 submission, you can use the IRS's online tracking system or contact the IRS directly. Keep your submission details handy, as they may ask for specific information to assist you in tracking your form. Be aware of common rejection codes that might help you understand any issues that could arise.
Are there any special considerations for filing IRS 656 for nonresidents?
When filing IRS 656 for nonresidents, it’s important to include any necessary documentation to verify your status and ensure compliance with IRS regulations. Depending on the specifics, working with an authorized representative or Power of Attorney (POA) can also facilitate the filing process.
What should I know about using e-signatures with the IRS 656 form?
E-signatures are accepted for IRS 656 submissions, which can streamline the filing process. However, it’s essential to ensure that the platform you are using for e-filing complies with IRS requirements for e-signatures to avoid any potential issues with your submission.
What are some common errors that can occur when filing IRS 656, and how can I avoid them?
Some common errors include providing inaccurate personal information or failing to sign the form. To avoid these mistakes, double-check all entries for accuracy before submitting your IRS 656 form. Furthermore, reviewing any instructions specific to your situation can help you navigate the filing process more smoothly.
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.
