Form 656 - Offer In Compromise Page 2
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4Item 8 — By submitting this offer, I/we
understand and agree to the following
conditions:
(f)
The IRS will keep all payments and credits
(a) I/we voluntarily submit all payments made
made, received or applied to the total original
on this offer.
tax liability before submission of this offer.
The IRS may keep any proceeds from a
(b) The IRS will apply payments made under
levy served prior to submission of the offer,
the terms of this offer in the best interest
but not received at the time the offer is
of the government.
submitted. If I/we have an installment
agreement prior to submitting the offer,
(c) If the IRS rejects or returns the offer or
I/we must continue to make the payments
I/we withdraw the offer, the IRS will return
as agreed while this offer is pending.
any amount paid with the offer. If I/we
Installment agreement payments will not
agree in writing, IRS will apply the amount
be applied against the amount offered.
paid with the offer to the amount owed.
If I/we agree to apply the payment, the date
the IRS received the offer remittance will
(g) The IRS will keep any refund, including
be considered the date of payment. I/we
interest, due to me/us because of
understand that the IRS will not pay interest
overpayment of any tax or other liability,
on any amount I/we submit with the offer.
for tax periods extending through the
calendar year that the IRS accepts
(d) I/we will comply with all provisions of
the offer. I/we may not designate an
the Internal Revenue Code relating to
overpayment ordinarily subject to
filing my/our returns and paying my/our
refund, to which the IRS is entitled, to
required taxes for 5 years or until the
be applied to estimated tax payments for
offered amount is paid in full, whichever
the following year. This condition does
is longer. In the case of a jointly
not apply if the offer is based on Doubt
submitted offer to compromise joint
as to Liability.
tax liabilities, I/we understand that
default with respect to the compliance
(h) I/we will return to the IRS any refund
provisions described in this paragraph
identified in (g) received after submission of
by one party to this agreement will
this offer. This condition does not apply to
not result in the default of the entire
offers based on Doubt as to Liability.
agreement. The default provisions
described in Item 8(o) of this agreement
(i)
The IRS cannot collect more than the full
will be applied only to the party failing
amount of the tax liability under this offer.
to comply with the requirements of this
paragraph. This provision does not
(j)
I/we understand that I/we remain responsible
apply to offers based on Doubt as to
for the full amount of the tax liability, unless
Liability.
and until the IRS accepts the offer in writing
and I/we have met all the terms and
(e) I/we waive and agree to the suspension
conditions of the offer. The IRS will not
of any statutory periods of limitation
remove the original amount of the tax liability
(time limits provided for by law) for the
from its records until I/we have met all the
IRS assessment of the tax liability for
terms of the offer.
the tax periods identified in Item 5. I/we
understand that the statute of limitations
(k) I/we understand that the tax I/we offer to
for collection will be suspended during the
compromise is and will remain a tax liability
period an offer is considered pending by
until I/we meet all the terms and conditions
the IRS (paragraph (m) defines pending).
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