The IRS will not file a Notice of Federal Tax Lien on any individual shared Correction Agreement p I authorize IRS to correct any typographical or clerical errors or make minor modifications to my/our Form 656 that I signed in connection to this offer. Catalog Number 16728N www.irs.gov. Make sure to sign and date the Form 656 Rev. 3-2017 Page 2 of 6 Low-Income Certification Individuals and Sole Proprietors Only Do you qualify for Low-Income Certification You qualify if your gross monthly...household income is less than or equal to the amount shown in the chart below based on your family size and where you live. Did you use the Pre-Qualifier tool located on our website at http //irs. treasury. gov/oicprequalifier/ prior to filling out this form Yes No Note The use of the Pre-Qualifier tool is not mandatory before sending in your offer. However it is recommended. Include the 186 application fee and initial payment personal check cashier s check or money order with your Form 656....Failure to include the required information will delay consideration of your offer. The Form 656 B Offer in Compromise may be found under the Forms and Pubs tab on www.irs.gov. Form Department of the Treasury Internal Revenue Service Rev. March 2017 To Commissioner of Internal Revenue Service Offer in Compromise 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. Our authority to...request this information is section 7801 of the Internal Revenue Code. Our purpose for requesting the information is to determine if it is in the best interests of the IRS to accept an offer. You are not required to make an offer however if you choose to do so you must provide all of the taxpayer information requested. Failure to provide all of the information may prevent us from If you are a paid preparer and you prepared the Form 656 for the taxpayer submitting an offer we request that you...complete and sign Section 9 on Form 656 and provide identifying information. Providing this information is voluntary. WARNING The attached Form 656 is intended for tax professional use only and must not be used by the individual taxpayer. Make checks payable to the United States Treasury and attach to the front of your Form 656 Offer in Compromise. Completed financial statements and required application fee and initial payment must be included with your Form 656. 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 2 or Section 3 below. Did you use the Pre-Qualifier tool located on our website at http //irs. treasury. gov/oicprequalifier/ prior to filling out this form Yes No Note The use of the Pre-Qualifier tool is not mandatory before sending in your offer. You must also include the completed Form 433-A OIC and/or 433-B OIC and supporting...documentation* You should fill out either Section 1 or Section 2 but not both depending on the tax debt you are offering to compromise.
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Instructions and Help about IRS 656
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How to fill out IRS 656
Instructions and Help about IRS 656
How to edit IRS 656
To edit IRS 656, you can use pdfFiller's tools to make necessary modifications to the document. Simply upload the IRS 656 form into the pdfFiller platform, use available editing features to correct any inaccuracies, and ensure all information is accurate before submission. Once you have made your edits, save your changes to keep a final record of your updated form.
How to fill out IRS 656
Filling out IRS 656 requires specific information about your tax situation and financial circumstances. You will need to provide your personal details, including your name, address, and Social Security number. Additionally, be prepared to disclose your income, liabilities, and assets. To fill out the form correctly, follow these steps:
01
Download the IRS 656 form from the IRS website or use pdfFiller.
02
Provide your identifying information in the designated fields.
03
Detail your current income and expenses accurately.
04
Review your entries for any discrepancies or errors.
05
Submit the completed form via the appropriate channels.
About IRS previous version
What is IRS 656?
IRS 656 is a form used by taxpayers to request an Offer in Compromise (OIC) with the Internal Revenue Service. This document allows taxpayers to propose a settlement for their tax debt for less than the full amount owed, based on their financial situation. The OIC program is designed to help those who face collection action but lack the ability to pay their tax debts in full.
Who needs the form?
Taxpayers who owe tax debts to the IRS and cannot afford to pay the full amount may need to fill out IRS 656. In particular, individuals facing financial hardships, including unemployment or significant medical expenses, might find this form beneficial as it enables them to negotiate a manageable settlement amount.
Components of the form
IRS 656 consists of several key components, including sections for personal information, financial information, and the offer amount. Taxpayers must also provide supporting documentation, such as pay stubs and bank statements, to substantiate their financial claims. Accurate completion of these components is essential for the IRS to evaluate the offer properly.
What information do you need when you file the form?
When filing IRS 656, you need to provide detailed financial information including income, expenses, assets, and liabilities. This includes your monthly income sources, necessary living expenses, and any outstanding debts. It is important to gather all relevant documents beforehand to ensure accurate reporting on the form.
Where do I send the form?
The completed IRS 656 form should be sent to the appropriate address listed in the IRS instructions for the form. The submission address depends on whether you are enclosing a payment with your application. Always verify the correct mailing address on the IRS website to ensure proper processing of your form.
What is the purpose of this form?
The primary purpose of IRS 656 is to facilitate the process of submitting an Offer in Compromise. This form helps taxpayers formally present their offer to the IRS while detailing their financial status, thereby justifying the request for a reduced tax obligation. It is crucial for taxpayers to understand the implications and requirements of submitting this offer.
When am I exempt from filling out this form?
You may be exempt from filling out IRS 656 if you have the means to pay your tax liability in full or if you have been issued a previously accepted Offer in Compromise that remains in effect. Additionally, those who are currently in bankruptcy proceedings may also be ineligible to submit this form.
What are the penalties for not issuing the form?
Failure to submit IRS 656 when required can lead to the IRS pursuing collection actions against you, including wage garnishments or bank levies. Additionally, taxpayers may face ongoing interest and penalties on their unpaid tax liabilities. Timely submission of the form is critical to avoid further complications.
Is the form accompanied by other forms?
IRS 656 is often accompanied by a Form 433-A (OIC) or Form 433-B (OIC), which are used to provide a comprehensive overview of your financial conditions. These additional forms are essential for the IRS to assess your ability to pay and to make a determination regarding your Offer in Compromise.
FAQ about IRS 656
What should I do if I made a mistake on my IRS form 656?
If you realize you made a mistake on your IRS form 656 after submission, you should not submit a new form. Instead, submit correct information in writing to the IRS and clearly identify that you're correcting a previously filed IRS form 656. Include any pertinent details such as your taxpayer identification number and the specific changes made.
How can I track the status of my IRS form 656 after submission?
To track the status of your submitted IRS form 656, you can call the IRS at their dedicated line for payment agreements or use their online tools if available. You may need to provide specific identification information to verify your identity and get updates on your submission.
Are there specific common errors I should look out for when submitting IRS form 656?
Yes, common errors when submitting IRS form 656 include incorrect taxpayer identification numbers, failing to sign the form, and incorrect financial information. Double-check all entries and ensure that you've reviewed all details before submission to avoid these pitfalls.
What should I know about privacy and data security when filing IRS form 656 electronically?
When filing IRS form 656 electronically, it’s essential to ensure that the transmission is secure. Use reputable e-filing software that offers data encryption. Always keep your device's antivirus and security software updated to protect against unauthorized access to your personal information.
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