Form 656 - Offer In Compromise Page 5

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Source of Funds, Making Your Payment, Filing Requirements, and Tax Payment Requirements
Section 6
Source of Funds
Tell us where you will obtain the funds to pay your offer. You may consider borrowing from friends and/or family, taking out a loan, or selling assets.
Making Your Payment
Include separate checks for the payment and application fee.
Make checks payable to the “United States Treasury” and attach to the front of your Form 656, Offer in Compromise. All payments must be in U.S.
dollars. Do not send cash. Send a separate application fee with each offer; do not combine it with any other tax payments, as this may delay
processing of your offer. You may also make payments through the
Electronic Federal Tax Payment System
(EFTPS). Your offer will be returned to
you if the application fee and the required payment are not included, or if your check is returned for insufficient funds.
Filing Requirements
I have filed all required tax returns.
I was not required to file a tax return for the following years:
Note: Do not include original tax returns with your offer. You must either electronically file your tax return or mail it to the appropriate
IRS processing office before sending in your offer.
Tax Payment Requirements
(check all that apply)
I have made all required estimated tax payments for the current tax year.
I am not required to make any estimated tax payments for the current tax year.
I have made all required federal tax deposits for the current quarter.
I am not required to make any federal tax deposits for the current quarter.
Offer Terms
Section 7
By submitting this offer, I have read, understand and agree to the following terms and conditions:
Terms, Conditions, and Legal
a) I request that the IRS accept the offer amount listed in this offer application as payment of my outstanding tax
Agreement
debt (including interest, penalties, and any additional amounts required by law) as of the date listed on this form. I
authorize the IRS to amend Section 1 and/or Section 2 if I failed to list any of my assessed tax debt or tax debt
assessed before acceptance of my offer. I also authorize the IRS to amend Section 1 and/or Section 2 by
removing any tax years on which there is currently no outstanding liability. I understand that my offer will be
accepted, by law, unless IRS notifies me otherwise, in writing, within 24 months of the date my offer was received
by IRS. I also understand that if any tax debt that is included in the offer is in dispute in any judicial proceeding it/
they will not be included in determining the expiration of the 24-month period.
IRS will keep my payments,
b) I voluntarily submit the payments made on this offer and understand that they will not be returned even if I
fees, and some refunds.
withdraw the offer or the IRS rejects or returns the offer. Unless I designate how to apply each required payment
in Section 5, the IRS will apply my payment in the best interest of the government, choosing which tax years and
tax debts to pay off. The IRS will also keep my application fee unless the offer is not accepted for processing.
c) The IRS will keep any refund, including interest, that I might be due for tax periods extending through the
calendar year in which the IRS accepts my offer. I cannot designate that the refund be applied to estimated tax
payments for the following year or the accepted offer amount. If I receive a refund after I submit this offer for any
tax period extending through the calendar year in which the IRS accepts my offer, I will return the refund within 30
days of notification. The refund offset does not apply to offers accepted under the provisions of Effective Tax
Administration or Doubt as to Collectibility with special circumstances based on public policy/equity
considerations.
d) I understand that the amount I am offering may not include part or all of an expected or current tax refund,
money already paid, funds attached by any collection action, or anticipated benefits from a capital or net operating
loss.
e) The IRS will keep any monies it has collected prior to this offer. Under section § 6331(a) the IRS may levy 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. No levy will be issued on individual shared responsibility
payments. However, 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.
f) The IRS will keep any payments that I make related to this offer. I agree that any funds submitted with this offer
will be treated as a payment unless I checked the box to treat any amount more than the required initial payment
as a deposit. Only amounts that exceed the mandatory payments can be treated as a deposit. I also agree that
any funds submitted with periodic payments made after the submission of this offer and prior to the acceptance,
rejection, or return of this offer will be treated as payments, unless I identify the amount more than the required
payment as a deposit on the check submitted with the corresponding periodic payment. A deposit will be returned
if the offer is rejected, returned, or withdrawn. I understand that the IRS will not pay interest on any deposit.
g) If my offer is accepted and my final payment is more than the agreed amount by $50 or less, the IRS will not
return the difference, but will apply the entire payment to my tax debt. If my final payment exceeds the agreed
amount by more than $50, the IRS will return the excess payment to me.
656
Form
(Rev. 3-2017)
Catalog Number 16728N

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