IRS 656 2012 free printable template

Paid on the day month s after acceptance. Periodic Payment is being submitted with the Form 656 and then on the total of day of each month thereafter for a months may not exceed 23. Total payments must equal the total Offer Amount. You must continue to make these monthly payments while the IRS is considering the offer. Catalog Number 16728N www.irs.gov Form 656 Rev. 5-2012 Page 2 of 4 Section 3 Continued Explanation of Circumstances Add additional pages if needed The IRS understands that...

How to fill out IRS 656

How to fill out IRS 656

1. Download the IRS 656 form from the IRS website or obtain a physical copy.
2. Fill out the personal information section including your name, address, and Social Security number.
3. Indicate the type of tax and the tax period for which you are requesting the Offer in Compromise.
4. Provide your financial information in the section detailing your income, expenses, and assets.
5. Choose the basis for your offer: doubt as to collectibility, doubt as to liability, or effective tax administration.
6. Sign and date the form at the designated section.
7. Submit the completed form along with the required fees and any supporting documentation to the appropriate IRS address.

Who needs IRS 656?

1. Individuals or businesses unable to pay their tax debts and seeking to settle for less than the full amount owed.
2. Taxpayers who believe they might qualify for an Offer in Compromise based on their financial situation.
3. Those who have been assessed tax liabilities and wish to negotiate a reduced payment with the IRS.

People Also Ask about

How hard is it to get an IRS offer in compromise?

But statistically, the odds of getting an IRS offer in compromise are pretty low. In fact, the IRS accepted only 15,154 offers out of 49,285 in 2021. Internal Revenue Service.

Can I do an offer in compromise myself?

How the offer amount is determined. An offer in compromise starts with you, the taxpayer, making an offer to the IRS using Form 656 — but you can't just offer any amount you wish as a settlement for your debt.

What forms do I need for offer in compromise?

Use Form 656 when applying for an Offer in Compromise (OIC), which is an agreement between you and the IRS that settles your tax liabilities for less than the full amount that you owe.

How do I write an offer in compromise letter to the IRS?

You must provide a written statement explaining why the tax debt or portion of the tax debt is incorrect. In addition, you must provide supporting documentation or evidence that will help the IRS identify the reason(s) you doubt the accuracy of the tax debt.

How much does an offer in compromise cost?

OIC Process Submitting an offer to the IRS is a formal process -- you can't simply call the IRS and say "Let's make a deal." You start by completing IRS Form 656, Offer in Compromise. There is a $186 application fee for filing an OIC, which you must attach to Form 656.

How do you fill out an offer in compromise?

What Are the Specific Steps for an Offer in Compromise? Gather personal and financial information. Fill out all forms: Form 656, Form 433 A, and Form 433 B. Attach all required documents. Pay the application fee.

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What is IRS 656?

IRS 656 is a form used by taxpayers to apply for an Offer in Compromise (OIC), which allows them to settle their tax debt for less than the full amount owed.

Who is required to file IRS 656?

Taxpayers who cannot pay their tax liability in full and wish to settle for a lesser amount may file IRS 656. Additionally, those who have a valid offer in compromise must use this form.

How to fill out IRS 656?

To fill out IRS 656, taxpayers should provide personal information, details of their tax liability, financial information, and the offer amount they are proposing. They also need to follow the instructions carefully, including signing and dating the form.

What is the purpose of IRS 656?

The purpose of IRS 656 is to allow taxpayers to request an Offer in Compromise, enabling them to negotiate a lower tax payment based on their financial situation.

What information must be reported on IRS 656?

The information required includes the taxpayer's personal information, current income, expenses, asset details, and the proposed offer amount to resolve the tax debt.