Fillable Form 656-L - Offer In Compromise (Doubt As To Liability) (Page 2 of 8) in pdf

Form 656-L - Offer In Compromise (Doubt As To Liability) Page 2

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INSTRUCTIONS FOR FORM 656−L, OFFER IN COMPROMISE (DOUBT AS TO LIABILITY)

What you need to know

What is an Offer in

An offer in compromise is an agreement between you (the taxpayer) and the

Compromise?

Internal Revenue Service (IRS) that settles a tax debt for less than the full

amount owed. The program provides eligible taxpayers with a path toward

paying off their tax debt and getting a “fresh start.” The ultimate goal is a

compromise that suits the best interest of both the taxpayer and the IRS.

If you have a legitimate doubt that you owe part or all of the tax debt, you

will need to complete a Form 656-L Offer in Compromise (Doubt as to

Liability). If you do not dispute the amount of the tax debt, you should not ﬁle

a Form 656-L.

Submitting an offer application does not guarantee that the IRS will accept

your offer. It begins a process of evaluation and veriﬁcation by the IRS.

What is a Doubt as to Liability

Doubt as to liability exists where there is a genuine dispute as to the exis-

offer?

tence or amount of the correct tax debt under the law.

Doubt as to liability does not exist if the tax debt has been established by a

ﬁnal court decision or judgment concerning the existence or amount of the

tax debt or if the tax debt is based on current law.

A doubt as to liability offer will only be accepted for the tax period(s) in

question.

Note: If you do not dispute the amount of the tax debt, you should not ﬁ le a

Form 656-L. Doing so may result in the offer being returned with no consid-

eration.

What documentation or

You must provide supporting documentation or evidence that will help the

support is needed?

IRS identify the reason(s) you doubt the accuracy of the tax debt.

You must include a written statement explaining why the tax debt or portion

of the tax debt is incorrect.

How much should I offer?

The amount of your offer should be based on what you believe the correct

amount of the tax debt should be, not what you owe.

You must offer more than zero ($0). If you do not want to offer more than

zero you should read the section below (see page 4), What alternatives do

I have to sending in an Offer in Compromise (Doubt as to Liability)?

IMPORTANT INFORMATION

What is the difference

A doubt as to liability offer is an offer in compromise based on a legitimate

between a Doubt as to

doubt that you owe any part of the tax debt. If you believe you do not owe

Liability Offer and a Doubt as

part or all of the tax debt, you will need to complete a Form 656-L, Offer

to Collectibility Offer?

in Compromise (Doubt as to Liability). No deposit or application fee is

required for a doubt as to liability offer.

Form 656-L - Offer In Compromise (Doubt As To Liability) Page 2

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