Complete one Form 656 for your individual tax debts and one Form 656 for your business tax debts. Each Form 656 will require the 186 application fee and initial payment. Do not send original documents. Fill out Form 656. The Form 656 identifies the tax years and type of tax you would like to compromise. The Form 656-L is not included as part of this package. To request a Form 656-L visit www. irs. gov or a local IRS office or call toll-free 1-800-TAX-FORM 1-800-829-3676. One Form 656 will be for...the individual tax debts while the second Form 656 will be for the LLC employment tax debts incurred after January 1 2009 and excise tax debts after January 1 2008. Form 656 Booklet Offer in Compromise CONTENTS What you need to know. 1 Paying for your offer. 3 How to apply. You will complete one Form 656 for yourself listing all your joint and any separate tax debts and your spouse will complete one Form 656 listing all his or her joint tax debt s plus any separate tax debt s for a total of...two Forms 656. However it is recommended. Include the 186 application fee and initial payment personal check cashier s check or money order with your Form 656. Payoffs and balances. Copies of relevant supporting documentation of the special circumstances described in the Explanation of Circumstances on Form 656 if applicable. You can get forms and publications by calling 1-800-TAX-FORM 1-800-829-3676 by visiting your local IRS office or at www*irs*gov* Taxpayer resources The Taxpayer Advocate...Service TAS is an independent organization within the Internal Revenue Service that helps taxpayers and protects taxpayer rights. They help taxpayers whose problems with the IRS are causing financial difficulties who ve tried but haven t been able to resolve their problems with the IRS or believe an IRS system or procedure isn t working as it should. And the service is free. Your local advocate s number is in your local directory and at taxpayeradvocate. irs. gov* You can also call them at...1-877-777-4778. For more information about TAS and your rights under the Taxpayer Bill of Rights go to taxpayeradvocate. irs. gov* TAS is your voice at the IRS* You may also be able to receive assistance from a Low Income Tax Clinic LITC. Low Income Taxpayer Clinics LITCs are independent from the IRS* LITCs serve individuals whose income is below a certain level and who need to resolve a tax problem with the IRS* LITCs provide professional representation before the IRS or in court on audits...appeals tax collection disputes and other issues for free or for a small fee. For more information and to find an LITC near you see the LITC page at www. taxpayeradvocate. irs. gov/litcmap or IRS Publication 4134 Low Income Taxpayer Clinic List. This Publication is also available by calling the IRS toll-free at 1-800-829-3676 or visiting your local IRS office. Submitting an application does not ensure that the IRS will accept your offer. It begins a process of evaluation and verification by the...IRS taking into consideration any special circumstances that might affect your ability to pay.
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How to fill out IRS 656-B
Instructions and Help about IRS 656-B
How to edit IRS 656-B
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How to fill out IRS 656-B
Filling out the IRS 656-B Tax Form involves several clear steps. First, gather your financial documents to ensure you have the necessary information readily available. Next, accurately complete each section of the form, being diligent to adhere to the instructions provided. After filling out the form, review it thoroughly for any inaccuracies before submission.
About IRS 656-B 2016 previous version
What is IRS 656-B?
IRS 656-B is the form used by taxpayers who wish to submit an Offer in Compromise (OIC) to the IRS. This form allows individuals to propose a settlement to pay less than the full amount owed on their tax liabilities based on their financial circumstances. The process involves demonstrating an inability to pay the full tax amount, making it an essential tool for those in financial distress.
When am I exempt from filling out this form?
Taxpayers are exempt from filling out the IRS 656-B if they are not eligible for an Offer in Compromise. This may apply to individuals who can pay their tax liabilities in full or have filed for bankruptcy. Additionally, if the IRS has already initiated collection actions, this form may not be necessary if other resolutions are pursued.
What are the penalties for not issuing the form?
Failure to issue the IRS 656-B when required can lead to penalties, including the potential for continued collection actions by the IRS. Additionally, taxpayers may lose the opportunity to negotiate a reduced payment plan, resulting in further financial strain. It is crucial to understand that not submitting this form can lead to adverse tax consequences.
Is the form accompanied by other forms?
The IRS 656-B is often accompanied by additional forms, such as the IRS 433-A, which details your financial situation in further depth. Depending on the specifics of your case, you may need to submit other supporting documents to strengthen your offer. Ensuring you include these forms can provide a more complete picture of your financial condition and support your request.
What is the purpose of this form?
The purpose of IRS 656-B is to formally request an Offer in Compromise. By completing this form, taxpayers are making a legal offer to the IRS to settle their tax debts for an amount lower than what is owed. This can significantly alleviate financial burdens for those struggling to pay their tax liabilities.
Who needs the form?
Taxpayers who face significant financial hardship and are unable to pay their full tax debts may need the IRS 656-B form. It is designed for individuals seeking to negotiate their tax bills and secure a more manageable payment plan with the IRS. Eligibility requires meeting specific financial criteria that indicate the inability to pay the tax owed.
Components of the form
The IRS 656-B consists of several key components, including taxpayer information, financial disclosures, and the offer amount. It requires detailed information about income, assets, expenses, and liabilities to assess the taxpayer's financial situation. Completing these sections accurately is critical for the consideration of the offer by the IRS.
What information do you need when you file the form?
When filing the IRS 656-B, essential information includes your personal identification details, income statements, asset documentation, and a comprehensive outline of your monthly expenses. Ensuring you have all this information on hand will facilitate a smoother filing process and improve the chances of your offer being accepted by the IRS.
Where do I send the form?
The completed IRS 656-B form should be sent to the address specified in the form instructions. Generally, this would be the appropriate IRS office that handles Offers in Compromise. Ensuring that your form is mailed to the correct address is essential to avoid delays in processing your application.
FAQ about IRS 656-B
What should I do if I realize I made a mistake after submitting form 656-b rev 2-2016?
If you've submitted form 656-b rev 2-2016 and discover an error, you can file an amended version of the form. Make sure to clearly indicate the corrections and provide any necessary explanations. This ensures that your updated information is properly recorded without any interruptions to your processing.
How can I check the status of my submitted form 656-b rev 2-2016?
To verify the status of your form 656-b rev 2-2016, you can use the online tracking system provided by the relevant agency. You will typically need your submission details. Be aware of common rejection codes if your form was e-filed; these can assist in troubleshooting any issues.
Are e-signatures acceptable for form 656-b rev 2-2016?
Yes, e-signatures are generally accepted for form 656-b rev 2-2016, provided they meet the specific requirements outlined by the submitting agency. Make sure you are using compatible software and follow the guidelines carefully to ensure your submission is valid.
What common errors should I watch for when submitting form 656-b rev 2-2016?
Common errors include incorrect personal information, missing signatures, and mismatched data. To avoid these mistakes, double-check all entries against your documentation and ensure that forms are complete before submission. This can prevent delays in processing.
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