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

Page 2

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

What you need to know

Your Rights as a Taxpayer

Each and every taxpayer has a set of fundamental rights they should be aware of

when dealing with the IRS. Explore your rights and our obligations to protect them.

For more information on your rights as a taxpayer,

Bill-of-Rights.

What is a Doubt as to

Doubt as to liability exists where there is a genuine dispute as to the existence or

Liability offer?

amount of the correct tax debt under the law. 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).

Doubt as to liability cannot be disputed or considered if the tax debt has been

established by a final court decision or judgment concerning the existence or

amount of the assessed tax debt or if the assessed tax debt is based on current

law.

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.

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

What documentation or

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

support is needed?

tax debt is incorrect. In addition, you must provide supporting documentation or

evidence that will help the IRS identify the reason(s) you doubt the accuracy of the

tax debt.

Note: Failing to provide a written statement will cause your offer to be

returned with no further consideration.

How much should I offer?

In order to qualify, you must make an offer that is $1 or more and should be based

on what you believe the correct amount of tax should be, not what you owe. If you

believe you do not owe any tax, you should pursue alternative solutions listed

below.

Note: Do not include any payment(s) with the Form 656-L. No deposit or

application fee is required for a doubt as to liability offer.

IMPORTANT INFORMATION

What alternatives do I have to

When you disagree with the accuracy of a tax debt, depending on the situation and

sending in an Offer in

the type of tax, the IRS has other available remedies. If your tax debt is other than

Compromise (Doubt as to

a Trust Fund Recovery Penalty (TFRP) or Personal Liability Excise Tax (PLET),

Liability)?

you should pursue the options below first before submitting an offer.

Note: If you wish to obtain any of the publications mentioned below or have

any questions about completing the forms, you may call toll free at (800)

829-1040, visit your local IRS office, or our website at

656-L

Catalog Number 47516R

Form

(Rev. 1-2016)

Form 656-L - Offer In Compromise Page 2

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