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

Page 6

Section 3

Amount of the Offer

I offer to pay $

Must be $1 or more and payable within 90 days of the notification of acceptance, unless an alternative payment term is

approved at the time the offer is accepted. Do not send any payment with this form.

Section 4

Terms

In the following agreement, the pronoun "we" may be assumed in place of "I" when there are joint liabilities and both parties are signing this Agreement.

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

Terms, Conditions, and Legal

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

Agreement

b) If the IRS rejects or returns the offer or I withdraw the offer, the IRS will return any amount paid with the offer.

I understand the IRS will not pay interest on any amount I send with the offer. If I agree in writing, the IRS will

apply the amount paid with the offer to the amount owed. If I agree to apply the payment, the date the IRS

received the offer remittance will be considered the date of payment.

IRS will keep my payments and

c) I voluntarily submit all payments made on this offer.

fees

d) The IRS will keep all payments and credits made, received, or applied to the total original tax debt before I

send in the offer or while it is under consideration, including any refunds from tax returns and/or credits from tax

years prior to the year in which the offer was accepted.

e) The IRS may levy under section 6331(a) up to the time that the IRS official signs and acknowledges my offer

as pending, which is accepted for processing, and the IRS may keep any proceeds arising from such a levy.

f) If the Doubt as to Liability offer determines that I do not owe the taxes, or the IRS ultimately over-collected the

compromised tax liability, the IRS will return the over-collected amount to me, unless such refund is legally

prohibited by statute.

g) If the IRS served a continuous levy on wages, salary, or certain federal payments under sections 6331(e) or

(h), then the IRS could choose to either retain or release the levy. No levy may be made during the time an offer

in compromise is pending.

I agree to the time extensions

h) To have my offer considered, I agree to the extension of time limit provided by law to assess my tax debt

allowed by law

(statutory period of assessment). I agree that the date by which the IRS must assess my tax debt will now be

the date by which my debt must currently be assessed plus the period of time my offer is pending plus one

additional year if the IRS rejects, returns, or terminates my offer or I withdraw it. [Paragraph (m) of this section

defines pending and withdrawal]. I understand I 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 understand, however, the IRS may not

consider my offer if I decline to waive the statutory period of assessment or if I provide only a limited waiver. I

also understand the statutory period for collecting my tax debt will be suspended during the time my offer is

pending with the IRS, for 30 days after any rejection of my offer by the IRS, and during the time any rejection of

my offer is being considered by the Appeals Office.

I understand I remain responsible

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

for the full amount of the tax

liability

j) I understand I remain responsible for the full amount of the tax debt, unless and until the IRS accepts the offer

in writing and I 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 have met all the terms of the offer.

k) I understand the tax I offer to compromise is and will remain a tax debt until I meet all the terms and

conditions of this offer. If I 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.

l) Once the IRS accepts the offer in writing, I have no right to contest, in court or otherwise, the amount of the

tax debt.

Pending status of an offer and

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

right to appeal

pending until an authorized IRS official accepts, rejects, returns, or acknowledges withdrawal of the offer in

writing. If I 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 an offer is rejected, no levy may be made during the

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

the decision, I waive the right to a hearing before the Appeals Office about the offer.

I understand if IRS fails to make a

n) I understand under Internal Revenue Code (IRC) § 7122(f), my offer will be accepted, by law, unless IRS

decision in 24-months my offer

notifies me otherwise, in writing, within 24 months of the date my offer was initially received.

will be accepted

I understand what will happen if I

o) If I fail to meet any of the terms of this offer, the IRS may levy or sue me to collect any amount ranging from

fail to meet the terms of my offer

the unpaid balance of the offer to the original amount of the tax debt (less payments made) plus penalties and

(e.g. default)

interest that have accrued from the time the underlying tax liability arose. The IRS will continue to add interest,

as required by Section § 6601 of the Internal Revenue Code, on the amount of the IRS determines is due after

default.

656-L

Catalog Number 47516R

Form

(Rev. 1-2016)

Form 656-L - Offer In Compromise Page 6

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