Fillable Form 656-L - Offer In Compromise (Doubt As To Liability) (Page 6 of 8) in pdf

Page 2 of 4

Section 4

Terms

(Continued)

a) I/we voluntarily submit all payments made on this offer.

b) The IRS will apply payments made under the terms of this offer in the best interest of the

government.

If the IRS rejects or returns the offer or I/we withdraw the offer, the IRS will return any amount

paid with the offer. If I/we agree in writing, the IRS will apply the amount 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 be considered the date of payment. I/we understand the IRS will not pay interest on any

amount I/we send with the offer.

c) The IRS will keep all payments and credits made, received, or applied to the total original tax

IRS will keep my/our payments

debt before I/we send in the offer or while it is under consideration. The IRS may keep any

and fees

proceeds from a levy served prior to submission of the offer, but not received at the time the offer

is sent in.

If you currently have an approved installment agreement with IRS and are making installment

payments, then you may stop making those installment agreement payments when you have

been notified your offer has been assigned for consideration. If your offer is rejected or returned

for any reason, your installment agreement with IRS will be reinstated with no additional fee.

If the Doubt as to Liability offer determines that you do not owe the taxes, or the IRS ultimately

over-collected the compromised tax liability, the IRS will refund the over-collected amount to you,

unless such refund is legally prohibited by statute.

d) To have my offer considered, I/we agree to the extension of time limit provided by law to assess

I/we agree to waive time limits

my tax debt (statutory period of assessment). I/we agree that the date by which the IRS must

provided by law

assess my/our tax debt will now be the date by which my/our debt must currently be assessed

plus the period of time my/our offer is pending plus one additional year if the IRS rejects, returns,

or terminates my/our offer or I/we withdraw it. [Paragraph (i) of this section defines pending and

withdrawal]. I/we understand I/we have the right not to waive the statutory period of assessment

or to limit the waiver to a certain length or certain periods or issues. I/we understand, however,

the IRS may not consider my/our offer if I/we decline to waive the statutory period of assessment

or if I/we provide only a limited waiver. I/we also understand the statutory period for collecting

my/our tax debt will be suspended during the time my/our offer is pending with the IRS, for 30

days after any rejection of my/our offer by the IRS, and during the time any rejection of my/our

offer is being considered by the Appeals Office.

e) The IRS cannot collect more than the full amount of the tax debt under this offer.

I/we understand I/we remain

responsible for the full amount

f) I/we understand I/we remain responsible for the full amount of the tax debt, unless and until the

of the tax liability

IRS accepts the offer in writing and I/we have met all the terms and conditions of the offer. The

IRS will not remove the original amount of the tax debt from its records until I/we have met all the

terms of the offer.

g) I understand the tax I/we offer to compromise is and will remain a tax debt until I/we meet all the

terms and conditions of this offer. If I/we file bankruptcy before the terms and conditions of this

offer are completed, any claim the IRS files in bankruptcy proceedings will be a tax claim.

h) Once the IRS accepts the offer in writing, I/we have no right to contest, in court or otherwise, the

amount of the tax debt.

i) The offer is pending starting with the date an authorized IRS official signs this form. The offer

Pending status of an offer and

remains pending until an authorized IRS official accepts, rejects, returns, or acknowledges

right to appeal

withdrawal of the offer in writing. If I/we appeal an IRS rejection decision on the offer, the IRS will

continue to treat the offer as pending until the Appeals Office accepts or rejects the offer in

writing. If I/we do not file a protest within 30 days of the date the IRS notifies me of the right to

protest the decision, I/we waive the right to a hearing before the Appeals Office about the offer in

compromise.

I/we understand under Internal Revenue Code (IRC) § 7122(f), my/our offer will be accepted, by

I/we understand if IRS fails to

law, unless IRS notifies me/us otherwise, in writing, within 24 months of the date my offer was

make a decision in 24-months

initially received.

my/our offer will be accepted

If I/we fail to meet any of the terms and conditions of the offer and the offer defaults, then the IRS

I/we understand what will

may do the following:

happen if I/we fail to meet the

terms of my/our offer (e.g.

• immediately file suit to collect the entire unpaid balance of the offer;

default)

• immediately file suit to collect an amount equal to the original amount of the tax debt as

liquidating damages, minus any payment already received under the terms of this offer;

• disregard the amount of the offer and apply all amounts already paid under the offer

against the original amount of the tax debt;

• file suit or levy to collect the original amount of the tax debt, without further notice of

any kind.

Catalog Number 47516R

656-L

Form

(Rev. 2-2012)

Form 656-L - Offer In Compromise (Doubt As To Liability) Page 6

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