2014-2025 Form

What is the IRS Form 656

The IRS Form 656 is an official document used by taxpayers in the United States to apply for an offer in compromise (OIC). This form allows individuals to settle their tax debts for less than the full amount owed. It is particularly useful for taxpayers who cannot pay their tax liabilities in full due to financial hardship. The form requires detailed financial information to assess the taxpayer's ability to pay and the legitimacy of the offer.

How to Obtain the IRS Form 656

To obtain the IRS Form 656, taxpayers can visit the official IRS website, where the form is available for download in PDF format. Additionally, individuals can request a physical copy by calling the IRS or visiting a local IRS office. It is essential to ensure that you are using the most current version of the form to avoid any issues during the submission process.

Steps to Complete the IRS Form 656

Completing the IRS Form 656 involves several key steps:

• Begin by providing your personal information, including your name, address, and Social Security number.
• Detail your financial situation by filling out the financial disclosure section, which includes income, expenses, assets, and liabilities.
• Indicate the amount you are offering to pay as part of the compromise.
• Sign and date the form, ensuring that all information is accurate and complete.

Legal Use of the IRS Form 656

The IRS Form 656 is legally binding once submitted and accepted by the IRS. It is crucial that all information provided is truthful and accurate, as any discrepancies can lead to penalties or rejection of the offer. The form must be accompanied by the appropriate fee and any supporting documentation that verifies the financial information disclosed.

Eligibility Criteria for the IRS Form 656

To be eligible to submit the IRS Form 656, taxpayers must meet specific criteria. These include having filed all required tax returns and not being in an open bankruptcy proceeding. Additionally, the taxpayer's offer must reflect their reasonable collection potential, which is assessed based on their financial situation. Understanding these criteria is vital for a successful application.

Form Submission Methods

Taxpayers can submit the IRS Form 656 through various methods. The form can be filed online using the IRS e-Services, which provides a secure and efficient way to submit documents. Alternatively, individuals may choose to mail the completed form to the appropriate IRS address or deliver it in person to a local IRS office. Each submission method has its own processing times and requirements.

Filing Deadlines / Important Dates

It is important for taxpayers to be aware of filing deadlines associated with the IRS Form 656. Generally, there are no specific deadlines for submitting an offer in compromise, but timely submission can affect the resolution of tax debts. Taxpayers should also consider the expiration of the statute of limitations on collections, which can impact their offer's acceptance.