Fillable Form 656 - Offer In Compromise (Page 6 of 7) in pdf

Page 5 of 6

Section 7

Offer Terms

(Continued)

Pending status of an offer and

h) Once an authorized IRS official signs this form, my offer is considered pending as of that signature date and it

right to appeal

remains pending until the IRS accepts, rejects, returns, or I withdraw my offer. An offer is also considered pending

for 30 days after any rejection of my offer by the IRS, and during the time that any rejection of my offer is being

considered by the Appeals Office. An offer will be considered withdrawn when the IRS receives my written

notification of withdrawal by personal delivery or certified mail or when I inform the IRS of my withdrawal by other

means and the IRS acknowledges in writing my intent to withdraw the offer.

i) I waive the right to an Appeals hearing if I do not request a hearing in writing within 30 days of the date the IRS

notifies me of the decision to reject the offer.

I must comply with my future

j) I will comply with all provisions of the internal revenue laws, including requirements to timely file tax returns and

tax obligations and understand

timely pay taxes for the five year period beginning with the date of acceptance of this offer and ending through the

I remain liable for the full

fifth year, including any extensions to file and pay. I agree to promptly pay any liabilities assessed after

amount of my tax debt until all

acceptance of this offer for tax years ending prior to acceptance of this offer that were not otherwise identified in

terms and conditions of this

Section 1 or Section 2 of this agreement. I also understand that during the five year period I cannot request an

offer have been met.

installment agreement for unpaid taxes incurred before or after the accepted offer. If this is an offer being

submitted for joint tax debt, and one of us does not comply with future obligations, only the non-compliant

taxpayer will be in default of this agreement. An accepted offer will not be defaulted solely due to the assessment

of an individual shared responsibility payment. I also understand that during the five year period I cannot request

an installment agreement for unpaid taxes incurred before or after the accepted offer.

k) I agree that I will remain liable for the full amount of the tax liability, accrued penalties and interest, until I have

met all of the terms and conditions of this offer. Penalty and interest will continue to accrue until all payment terms

of the offer have been met. If I file for bankruptcy before the terms and conditions of the offer are met, I agree that

the IRS may file a claim for the full amount of the tax liability, accrued penalties and interest, and that any claim

the IRS files in the bankruptcy proceeding will be a tax claim.

l) Once the IRS accepts my offer in writing, I have no right to challenge the tax debt(s) in court or by filing a refund

claim or refund suit for any liability or period listed in Section 1 or Section 2, even if I default the terms of the

accepted offer.

I understand what will happen if

m) If I fail to meet any of the terms of this offer, the IRS may revoke the certificate of release of federal tax lien

I fail to meet the terms of my

and file a new notice of federal tax lien; levy or sue me to collect any amount ranging from one or more missed

offer (e.g., default).

payments to the original amount of the tax debt (less payments made) plus penalties and 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 the IRS determines is due after default Shared

responsibility payments are excluded from levy.

I agree to waive time limits

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

provided 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 (h) of this section defines

pending and withdrawal.) I understand that 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, that the IRS may not

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

understand that 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 that any rejection

of my offer is being considered by the Appeals Office.

I understand the IRS may file a

o) The IRS may file a Notice of Federal Tax Lien during consideration of the offer. The IRS may file a Notice of

Notice of Federal Tax Lien on

Federal Tax Lien to protect the Government’s interest on offers that will be paid over time. This tax lien will be

my property.

released 30 days after the payment terms have been satisfied and the payment has been verified. If the offer is

accepted, the tax lien will be released within 30 days of when the payment terms have been satisfied and the

payment has been verified. The time it takes to transfer funds to the IRS from commercial institutions varies

based on the form of payment. The IRS will not file a Notice of Federal Tax Lien on any individual shared

responsibility debt.

Correction Agreement

p) I authorize IRS, to correct any typographical or clerical errors or make minor modifications to my/our Form 656

that I signed in connection to this offer.

I authorize the IRS to contact

q) By authorizing the IRS to contact third parties, I understand that I will not be notified of which third parties the

relevant third parties in order to

IRS contacts as part of the offer application process, including tax periods that have not been assessed, as stated

process my offer.

in §7602 (c ) of the Internal Revenue Code. In addition, I authorize the IRS to request a consumer report on me

from a credit bureau.

I am submitting an offer as an

r) I understand if the liability sought to be compromised is the joint and individual liability of myself and my co-

individual for a joint liability.

obligor(s) and I am submitting this offer to compromise my individual liability only, then if this offer is accepted, it

does not release or discharge my co-obligor(s) from liability. The United States still reserves all rights of collection

against the co-obligor(s).

656

Form

(Rev. 3-2017)

Catalog Number 16728N

Form 656 - Offer In Compromise Page 6

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