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 656 Form 2015

2015-2025 Form

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What is the 656 Form

The 656 Form, officially known as the Form 656, is used by taxpayers in the United States to apply for an offer in compromise with the Internal Revenue Service (IRS). This form allows individuals or businesses facing financial difficulties to settle their tax debts for less than the full amount owed. The IRS evaluates the taxpayer's ability to pay, income, expenses, and asset equity when considering acceptance of the offer. It serves as a critical tool for those seeking relief from overwhelming tax burdens.

How to use the 656 Form

Using the 656 Form involves several key steps. First, gather all necessary financial information, including income, expenses, and asset details. Next, complete the form accurately, ensuring that all required fields are filled out. It is essential to provide supporting documentation that substantiates your financial situation. Once the form is completed, submit it to the IRS along with the appropriate fee, if applicable. Monitoring the status of your application is crucial, as the IRS may request additional information during their review process.

Steps to complete the 656 Form

Completing the 656 Form requires careful attention to detail. Follow these steps for a successful submission:

  • Obtain the latest version of the 656 Form from the IRS website.
  • Fill out your personal information, including your name, address, and Social Security number.
  • Provide financial information, detailing your income, expenses, and assets.
  • Choose the basis for your offer, indicating whether you are submitting a doubt as to collectibility or doubt as to liability offer.
  • Sign and date the form, confirming that the information provided is accurate.
  • Submit the form to the appropriate IRS address, along with any required fees.

Legal use of the 656 Form

The legal use of the 656 Form is governed by IRS regulations. It is essential to ensure that all information submitted is truthful and complete. Misrepresentation or failure to disclose relevant financial information can lead to penalties or rejection of the offer. Once the IRS accepts the offer, it becomes a legally binding agreement, meaning taxpayers must adhere to the terms outlined in the acceptance letter. Understanding the legal implications is crucial for anyone considering this option for tax relief.

Required Documents

When submitting the 656 Form, it is important to include specific supporting documents to strengthen your application. Required documents typically include:

  • Proof of income, such as recent pay stubs or tax returns.
  • Documentation of monthly expenses, including bills and statements.
  • Asset documentation, such as bank statements, property deeds, or vehicle titles.
  • Any relevant financial statements that provide a comprehensive view of your financial situation.

Form Submission Methods

The 656 Form can be submitted to the IRS through various methods. Taxpayers may choose to file the form by mail, ensuring that it is sent to the correct IRS address based on their location. Some taxpayers may also have the option to submit the form electronically through IRS-approved software, which can streamline the process. It is important to check the IRS guidelines to determine the most appropriate submission method for your situation.

Quick guide on how to complete 656 2015 form

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