Form 656 Booklet - Offer In Compromise Page 4
Download a blank fillable Form 656 Booklet - Offer In Compromise in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form 656 Booklet - Offer In Compromise with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28If your business owes trust fund taxes, and responsible individuals may be
held liable for the trust fund portion of the tax, you are not eligible to submit
an offer unless you pay the trust fund portion of your tax debt first. Trust
fund taxes are the money withheld from an employee’s wages, such as
income tax, Social Security, and Medicare taxes.
The IRS will keep any refund, including interest, for tax periods extending
through the calendar year that the IRS accepts the offer. For example, if
your offer is accepted in 2011 and you file your 2011 Form 1040 showing a
refund, IRS will apply your refund to your tax debt.
The IRS may keep any proceeds from a levy served prior to you submitting
an offer. The IRS may levy your assets up to the time that the IRS official
signs and accepts your offer as pending. If your assets are levied after
your offer is pending, immediately contact the IRS person whose name and
phone number are listed on the levy.
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 submit an offer. This will allow you to make
your offer payments noted below. If your offer is returned for any reason,
your installment agreement with IRS will be reinstated with no additional fee.
PAYING FOR YOUR OFFER
Application fee
All offers require a $150 application fee.
EXCEPTION: If you are submitting an individual offer and meet the
Low Income Certification guidelines (see page 2 of Form 656, Offer in
Compromise), you will not be required to send the application fee.
Payment options
Submitting an offer requires the selection of a payment option as well as
sending an initial payment with your application. The amount of the initial
payment and subsequent payments will depend on the total amount of your
offer and which of the following payment options you choose.
Payment option 1: This option requires 20% of the total offer amount to be
paid with the offer and the remaining balance paid in five or fewer payments.
Payment option 2: This option requires the first payment with the offer and
the remaining balance paid in accordance with your proposed offer terms.
Under this option, you must continue to make all subsequent payments
while the IRS is evaluating your offer. Failure to make these payments
will cause your offer to be returned.
The length of the payment option you choose may affect the amount of
the offer we will accept. Generally, an offer paid within five months of
acceptance will require a lesser amount. Your offer amount cannot include a
refund we owe you.
If you meet the Low Income Certification guidelines, you will not be
required to send the initial payment, or make the monthly payments
during the evaluation of your offer but you will still need to choose one
of the payment options.
If your offer is returned or not accepted, any required payment(s) made with
the filing of your offer and thereafter, will not be refunded. Your payment(s)
will be applied to your tax debt.
2
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial