Get the free IRS Form 656 Offer in Compromise

Get Form

We are not affiliated with any brand or entity on this form

Fill out

Complete the form online in a simple drag-and-drop editor.

eSign

Add your legally binding signature or send the form for signing.

Share

Share the form via a link, letting anyone fill it out from any device.

Export

Download, print, email, or move the form to your cloud storage.

Why pdfFiller is the best tool for your documents and forms

Learn more about security

End-to-end document management

From editing and signing to collaboration and tracking, pdfFiller has everything you need to get your documents done quickly and efficiently.

Accessible from anywhere

pdfFiller is fully cloud-based. This means you can edit, sign, and share documents from anywhere using your computer, smartphone, or tablet.

Secure and compliant

pdfFiller lets you securely manage documents following global laws like ESIGN, CCPA, and GDPR. It's also HIPAA and SOC 2 compliant.

What is IRS Form 656

The IRS Form 656 Offer in Compromise is a tax document used by individuals and businesses to propose a settlement of their tax liabilities at a reduced amount.

pdfFiller scores top ratings on review platforms

Show more Show less

Fill fillable IRS 656 form: Try Risk Free

Rate free IRS 656 form

4.6

satisfied

65 votes

Who needs IRS Form 656?

Explore how professionals across industries use pdfFiller.

IRS Form 656 is needed by:

Taxpayers with tax debts seeking relief
Individuals facing economic hardship due to insufficient income
Businesses unable to pay full tax liabilities
Those wanting to settle tax through an offer
Anyone interested in tax compromise options

Comprehensive Guide to IRS Form 656

What is the IRS Form 656 Offer in Compromise?

The IRS Form 656 is a crucial tax compromise form used by individuals and businesses in the United States to propose a settlement for their tax liabilities when full payment is not feasible. An "offer in compromise" allows taxpayers to resolve their debts with the IRS for less than the total amount owed, particularly in situations where legal or financial hardships exist. This form is generally necessary for those unable to pay their full tax obligation due to circumstances such as limited income or unexpected expenses.

Purpose and Benefits of Using the IRS Form 656 Offer in Compromise

Taxpayers should consider using the IRS Form 656 as it offers significant tax relief and financial advantage. Settling tax debts through an offer in compromise can alleviate the burden of paying full taxes when it's financially overwhelming. Utilizing pdfFiller to complete the form simplifies the process, allowing for easy filling and eSigning, enhancing user experience. Key benefits of this approach include:

Reduction of total tax debt.
Financial relief in difficult times.
Streamlined process with pdfFiller features.

Eligibility Criteria for the IRS Form 656 Offer in Compromise

To determine eligibility for the IRS Form 656, taxpayers must meet specific criteria. These criteria include income and asset limitations that may indicate economic hardship. It’s essential to assess whether your situation qualifies as economic hardship and to consider whether you meet the parameters for Low-Income Certification. Key eligibility points include:

Income levels below the national average.
Asset limitations that prevent full payment.
Specific economic situations causing financial strain.

How to Fill Out the IRS Form 656 Offer in Compromise Online

Filling out the IRS Form 656 online through pdfFiller is a straightforward process. To get started, access the fillable form by following these steps:

Visit the pdfFiller website and locate the IRS Form 656.
Complete the key fields, including personal information and the tax periods involved.
Clearly specify the terms of your offer.
Review the form for accuracy to minimize common errors.

Common Mistakes When Filling Out the IRS Form 656 Offer in Compromise

Taxpayers often make critical mistakes when filling out the IRS Form 656. Common errors include inaccuracies in financial information and documentation. It is vital to provide precise details, as errors can lead to rejection. Utilizing pdfFiller can assist in verifying the correctness of your information before submission. Here are frequent pitfalls to avoid:

Omitting required personal information.
Incorrectly estimating income or expenses.
Failing to attach necessary supporting documents.

Submission Process for the IRS Form 656 Offer in Compromise

Successfully submitting the IRS Form 656 requires understanding the various submission methods available. Taxpayers can choose to submit the form online or by mail, each with distinct processes. Additionally, it's important to track the submission status and be aware of potential processing times. Here are essential details regarding the submission:

Online submission through pdfFiller or IRS portal.
Mail submission to the specified IRS address.
Fees that may apply depending on the submission method.

What Happens After You Submit the IRS Form 656 Offer in Compromise?

Once you submit the IRS Form 656, the IRS initiates a review process. During this time, it is crucial to understand how to check the status of your application and what the potential timelines are for a decision. If your offer is rejected, it’s important to know the common reasons for denial and what steps to take next. Generally, the following occurs after submission:

The IRS reviews your offer and documentation.
You can check your application status online.
Next steps depend on whether your offer is accepted or rejected.

Security and Compliance When Using the IRS Form 656 Offer in Compromise

When submitting sensitive information via the IRS Form 656, security and compliance are paramount. pdfFiller employs strict security measures to protect users' information during form submission. Compliance with privacy regulations, including HIPAA and GDPR, ensures users can trust the handling of their documents. Here are some security practices:

Utilization of 256-bit encryption for data protection.
Adherence to industry-compliant standards for document management.
Clear data retention policies to safeguard personal information.

Get Started with pdfFiller for Your IRS Form 656 Offer in Compromise

For a seamless experience in completing the IRS Form 656, pdfFiller offers an array of user-friendly features. With capabilities for eSigning and document editing, users can confidently fill out tax forms online. Additionally, customer support is readily available to assist throughout the process. Users have shared positive experiences using pdfFiller, marking it as a trusted solution for managing IRS forms efficiently.

Last updated on Oct 2, 2014

How to fill out the IRS Form 656

1.

Start by accessing pdfFiller and search for 'IRS Form 656 Offer in Compromise'. You can find it in the tax forms section or use the search bar.
2.

Once the form loads, familiarize yourself with the layout. Review the instructions at the top of the form.
3.

Gather necessary personal and financial information before filling out the form. This includes your contact details, tax periods, and reasons for submitting an offer.
4.

Using pdfFiller’s interface, click on the first field to enter your First Name, Middle Initial, and Last Name. Use your keyboard to type directly into the fields.
5.

Proceed to complete each section carefully, checking all options such as Low-Income Certification if applicable. Utilize the checkboxes as instructed.
6.

Review the details entered for accuracy before finalizing. Make sure all information is complete and correct.
7.

Once satisfied, look for the save option on pdfFiller to store your progress. You can also download or submit the form directly through the platform for easy filing.
8.

If you're ready to submit, follow any prompts on pdfFiller to accomplish that. Ensure you keep a copy for your records.

FAQs

If you can't find what you're looking for, please contact us anytime!

Contact Support

Who is eligible to file an IRS Form 656 Offer in Compromise?

Eligible individuals include taxpayers who cannot pay their full tax liabilities due to financial hardship, whether personal or business-related. It’s important to demonstrate your inability to pay the owed amount fully.

What documents are required to submit with Form 656?

You typically need to provide documentation detailing your financial situation, including income statements, asset inventory, and any hardships affecting your ability to pay taxes. Ensure you include any IRS requested documents.

What is the filing deadline for submitting the IRS Form 656?

There is no specific deadline to submit Form 656; however, promptly addressing your tax liabilities is advisable. Keep in mind that offers may take time for processing based on the IRS’s current workload.

How do I submit my completed Form 656?

Once your Form 656 is complete and saved on pdfFiller, you can submit it online directly through the platform or print it and send it via mail to the IRS address specified in the instructions.

What are common mistakes to avoid when filling out Form 656?

Common mistakes include not completing all required fields, forgetting to sign the form, or submitting inaccurate financial information. Double-check all entries to avoid these pitfalls.

How long does it take for an Offer in Compromise to be processed?

Processing times for the IRS Form 656 can vary widely, typically ranging from six months to over a year, depending on the complexity of the case and IRS workload. Be patient throughout this process.

Can I appeal if my Offer in Compromise is rejected?

Yes, if your offer is rejected, you may appeal the decision. The IRS will send a notice explaining why your offer was denied, and instructions for the appeals process will be included.