656 2019-2025 Form

What is the Form 656 IRS?

The Form 656 is an official document used by taxpayers in the United States to apply for an Offer in Compromise (OIC) with the Internal Revenue Service (IRS). This form allows individuals to settle their tax debts for less than the full amount owed. The IRS considers various factors, including the taxpayer's ability to pay, income, expenses, and asset equity when evaluating the application. The 2018 version of the form includes specific instructions and requirements that applicants must follow to ensure their submission is complete and compliant with IRS guidelines.

Steps to Complete the Form 656 IRS

Completing the Form 656 involves several important steps to ensure accuracy and compliance. Start by gathering all necessary financial documents, including income statements, bank statements, and details of assets. Next, fill out the form with precise information regarding your financial situation, including your offer amount and the reasons for your inability to pay the full tax liability. It is crucial to provide a detailed explanation of your circumstances and attach any required documentation. Finally, review the form for completeness and accuracy before submission to avoid delays in processing.

How to Obtain the Form 656 IRS

The Form 656 can be obtained directly from the IRS website. It is available for download in PDF format, allowing taxpayers to print and fill it out manually. Alternatively, individuals can request a physical copy by contacting the IRS directly. It is important to ensure that you are using the most current version of the form, as updates may occur that could affect the application process.

Legal Use of the Form 656 IRS

The Form 656 is legally binding once it is signed and submitted to the IRS. For the form to be considered valid, it must meet specific requirements set forth by the IRS, including proper signatures and the inclusion of all necessary documentation. Additionally, the submission of the form must comply with eSignature regulations if completed electronically. Using a reliable electronic signature platform can enhance the legal standing of your submission by ensuring compliance with relevant laws.

Eligibility Criteria for the Form 656 IRS

To qualify for an Offer in Compromise using the Form 656, taxpayers must meet certain eligibility criteria established by the IRS. These criteria include demonstrating an inability to pay the full amount of tax owed, showing that the offer is in the best interest of both the taxpayer and the IRS, and providing complete financial disclosure. Taxpayers must also be current with all filing and payment requirements to be considered for an OIC.

Form Submission Methods

The Form 656 can be submitted to the IRS through various methods. Taxpayers have the option to file the form online using a secure electronic signature platform, or they can mail a printed copy to the appropriate IRS address. In some cases, individuals may also deliver the form in person at a local IRS office. It is essential to follow the submission guidelines carefully to ensure timely processing.

Required Documents for the Form 656 IRS

When submitting the Form 656, taxpayers must include several required documents to support their application. These documents typically include proof of income, a completed Form 433-A or Form 433-B (Collection Information Statement), and any additional financial statements that provide a comprehensive view of the taxpayer's financial situation. Ensuring that all required documentation is included can significantly impact the approval process.