2011-2025 Form

What is the Form 656 B

The Form 656 B is an official document used by individuals seeking to settle their tax liabilities with the IRS through an offer in compromise. This form allows taxpayers to propose a reduced amount to settle their tax debts, making it a crucial tool for those facing financial difficulties. The form is specifically designed for individuals who cannot pay their full tax liability or believe that doing so would create an undue financial hardship.

How to use the Form 656 B

Using the Form 656 B involves several key steps. First, taxpayers must fill out the form accurately, providing necessary personal and financial information. This includes details about income, expenses, assets, and liabilities. After completing the form, it should be submitted to the IRS along with the required fees and supporting documentation. It is essential to ensure that all information is complete and truthful, as inaccuracies can lead to delays or denials of the offer.

Steps to complete the Form 656 B

Completing the Form 656 B requires careful attention to detail. Here are the steps to follow:

• Gather necessary documents: Collect your financial records, including income statements, expense reports, and asset valuations.
• Fill out personal information: Provide your name, address, and Social Security number at the top of the form.
• Detail your financial situation: Complete sections regarding your income, expenses, and assets to give the IRS a clear picture of your financial status.
• Propose an offer: Specify the amount you are willing to pay to settle your tax liability.
• Review and sign: Double-check all entries for accuracy and sign the form before submission.

Legal use of the Form 656 B

The Form 656 B is legally binding once signed and submitted to the IRS. It is essential to comply with all IRS guidelines and regulations when using this form. Failure to adhere to these legal requirements can result in rejection of the offer or further penalties. It is advisable to consult a tax professional if there are uncertainties regarding the legal implications of submitting the form.

Required Documents

When submitting the Form 656 B, certain documents must accompany it to support your offer. These may include:

• Proof of income: Recent pay stubs, tax returns, or other income documentation.
• Expense documentation: Receipts or statements that detail your monthly expenses.
• Asset documentation: Statements or appraisals for any assets you own, such as bank accounts, real estate, or vehicles.

Form Submission Methods

The Form 656 B can be submitted to the IRS through various methods. Taxpayers can choose to send the form by mail, ensuring it is sent to the correct IRS address based on their location. Alternatively, electronic submission may be available through certain tax software platforms, which can streamline the process. It is important to retain copies of the submitted form and any accompanying documents for personal records.