Fillable Form 656 - Offer In Compromise - Department Of The Treasury (Page 2 of 4) in pdf

Page 2 of 4

Section IV Cont.

Deferred Periodic Payment Offer – Offer amount will be paid over the remaining life of the collection statute. The first payment must be

submitted with your Form 656. You must make regular payments during your offer investigation. Complete the following:

will be submitted with the Form 656. Beginning in the month after the offer is submitted

, on the

(insert month

)

day of each month, $

will be sent in for a total of

months.

Optional - Designation of Required Payment under IRC 7122(c)

You have the option to designate the required payment you made under Section IV above. If you chose not to designate your required payment, then

the IRS will apply your payment in the best interest of the government. Please complete the following if you choose to designate your payment:

paid under IRC 7122 (c) is to be applied to my

Tax Year/Quarter

for my/our tax

(s) (whichever is applicable)

form

If you pay more than the required payment when you submit your offer and want any part of that additional payment treated as a deposit, check the

box below and insert the amount. It is not required that you designate any portion of your payment as a deposit. Note: If the required payment is not

paid, the offer will be returned even if you make a payment you designate as a deposit.

I am making a deposit of $

with this offer.

Section V

By submitting this offer, I/we have read, understand and agree to the following conditions:

(a) I/We voluntarily submit all tax payments made on this

(f) The IRS will keep all payments and credits made, received

offer, including the mandatory payments of tax required under

or applied to the total original liability before submission of this

section 7122(c). These tax payments are not refundable even

offer and all payments required under section 7122(c). The

if I/we withdraw the offer prior to acceptance or the IRS

IRS will also keep all payments in excess of those required by

returns or rejects the offer. If the offer is accepted, the IRS will

section 7122(c) that are received in connection with the offer

apply payments made after acceptance in the best interest of

and that are not designated as deposits in Section IV. The

the government.

IRS may keep any proceeds from a levy served prior to

submission of the offer, but not received at the time the offer

(b) Any payments made in connection with this offer will be

is submitted. As additional consideration beyond the amount

applied to the tax liability unless I have specified that they be

of my/our offer, the IRS will keep any refund, including

treated as a deposit. Only amounts that exceed the

interest, due to me/us because of overpayment of any tax or

mandatory payments can be treated as a deposit. Such a

other liability, for tax periods extending through the calendar

deposit will be refundable if the offer is rejected or returned by

year in which the IRS accepts the offer. The date of

the IRS or is withdrawn. I/we understand that the IRS will not

acceptance is the date on the written notice of acceptance

pay interest on any deposit.

issued by the IRS to me/us or to my/our representative. I/We

may not designate an overpayment ordinarily subject to

refund, to which the IRS is entitled, to be applied to estimated

unless the offer was not accepted for processing.

tax payments for the following year.

(d) I/We will comply with all provisions of the Internal Revenue

(g) I/We will return to the IRS any refund identified in

Code relating to filing my/our returns and paying my/our

paragraph (f) received after submission of this offer.

required taxes for 5 years or until the offered amount is paid in

full, whichever is longer. In the case of a jointly submitted

(h) The IRS cannot collect more than the full amount of the

Offer in Compromise joint liabilities, I/we understand that

liability under this offer.

default with respect to the compliance provisions described in

this paragraph by one party to this agreement will not result in

(i) I/We understand that I/we remain responsible for the full

the default of the entire agreement. The default provisions

amount of the liabilities, unless and until the IRS accepts the

described in Section V(i) of this agreement will be applied only

offer in writing and I/we have met all the terms and conditions

to the party failing to comply with the requirements of this

of the offer. The IRS will not remove the original amount of

paragraph.

the liabilities from its records until I/we have met all the terms

and conditions of the offer. I/We understand that the liabilities

(e) I/We waive and agree to the suspension of any statutory

I/we offer to compromise are and will remain liabilities until

periods of limitation (time limits provided by law) for the IRS

I/we meet all the terms and conditions of this offer. If I/we file

assessment of the liability for the periods identified in Section

for bankruptcy before the terms and conditions of this offer

II. I/We understand that I/we have the right not to waive

are completed, any claim the IRS files in the bankruptcy

these statutory periods or to limit the waiver to a certain length

proceedings will be a tax claim

or to certain periods. I/We understand, however, that the IRS

may not consider this offer if I/we refuse to waive the statutory

(j) Once the IRS accepts the offer in writing, I/we have no

periods for assessment or if we provide only a limited waiver.

right to contest, in court or otherwise, the amount of the

The amount of any Federal tax due for the periods described

liability.

in Section II may be assessed at any time prior to the

acceptance of this offer or within one year of the rejection of

(k) The offer is pending starting with the date an authorized

this offer. I/We understand that the statute of limitations for

IRS official signs the form. The offer remains pending until an

collection will be suspended during the period an offer is

authorized IRS official accepts, rejects, returns or

considered pending by the IRS (paragraph (k) of this section

acknowledges withdrawal of the offer in writing. If I/we appeal

defines pending).

an IRS rejection decision on the offer, IRS will continue to

treat the offer as pending until the Appeals Office accepts or

rejects the offer in writing.

656

Catalog Number 16728N

Form

(Rev. 2-2007)

Form 656 - Offer In Compromise - Department Of The Treasury Page 2

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