Do not send any original documents. Fill out Form 656. The Form 656 identifies the tax years and type of tax you would like to compromise. Form 656 Booklet Offer in Compromise CONTENTS What you need to know. 1 Paying for your offer. 2 How to apply. Complete one Form 656 for your individual tax debts and one Form 656 for your business tax debts. Each Form 656 will require the 186 application fee and initial down payment. The Form 656-L is not included as part of this package. To request a Form...656-L visit www.irs.gov or a local IRS office or call toll-free 1-800-TAXFORM 1-800-829-3676. Do not leave blank. Use whole dollars only. If you cannot pay the Offer Amount shown above due to special circumstances explain on the Form 656 Offer in Compromise Section 3. Offer in Compromise Did you use the Pre-Qualifier tool located on our website at www.irs.gov prior to filling out this form Include the Application Fee and Payment personal check cashier s check or money order with your Form 656....You will complete one Form 656 for yourself listing all your joint and separate tax debts and your spouse will complete one Form 656 listing all his or her joint and separate tax debts for a total of two Forms 656. You may consider borrowing from friends and/or family taking out a loan or selling assets. Making Your Payment Make checks payable to the United States Treasury and attach to the front of your Form 656 Offer in Compromise. If you believe you re eligible for TAS assistance call...toll-free 1 877 777 4778. For more information go to www*irs*gov/advocate. You may also be able to get assistance from a Low Income Taxpayer Clinic LITC. LITCs serve individuals whose income is below a certain level and who need to resolve tax problems such as audits appeals and tax collection disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. This booklet will lead you through a...series of steps to help you calculate an appropriate offer based on your assets income expenses and future earning potential* The application requires you to describe your financial situation in detail so before you begin make sure you have the necessary information and documentation* Are You Eligible Before your offer can be considered you must 1 file all tax returns you are legally required to file 2 make all required estimated tax payments for the current year and 3 make all required federal...tax deposits for the current quarter if you are a business owner with employees. Bankruptcy If you or your business is currently in an open bankruptcy proceeding you are not eligible to apply for an offer. Any resolution of your outstanding tax debts generally must take place within the context of your bankruptcy proceeding. If you are not sure of your bankruptcy status contact the Centralized Insolvency Operation at 1-800-973-0424. Notice of Federal Tax Lien A lien is a legal claim against all...your current and future property. When you don t pay your first bill for taxes due a lien is created by law and attaches to your property.
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How to fill out IRS 656-B
Instructions and Help about IRS 656-B
How to edit IRS 656-B
To edit IRS 656-B, utilize platforms like pdfFiller that allow electronic editing of tax forms. Make sure to input the correct information as required by the IRS. After editing, save your changes for future reference or submission.
How to fill out IRS 656-B
Filling out IRS 656-B requires detailed attention to each section of the form. Start by entering your personal information, including your name, address, and taxpayer identification number. Ensure that you accurately report the details pertinent to your application for the Offer in Compromise. Specific instructions are provided in the form’s accompanying guidelines.
About IRS 656-B 2015 previous version
What is IRS 656-B?
What is the purpose of this form?
Who needs the form?
When am I exempt from filling out this form?
Components of the form
What are the penalties for not issuing the form?
What information do you need when you file the form?
Is the form accompanied by other forms?
Where do I send the form?
About IRS 656-B 2015 previous version
What is IRS 656-B?
IRS 656-B is the Offer in Compromise application form used by taxpayers seeking to settle their tax liability for less than the total amount owed. This form enables taxpayers to negotiate a settlement with the IRS based on their financial situation.
What is the purpose of this form?
The purpose of IRS 656-B is to provide a structured way for taxpayers to propose an Offer in Compromise to the IRS. By submitting this form, filers can potentially qualify for a reduced tax liability based on their ability to pay, making it an essential tool for those facing financial hardship.
Who needs the form?
Taxpayers who have significant tax debts and cannot pay the amount in full may need to fill out IRS 656-B. It is particularly applicable for individuals who can demonstrate financial hardship or a legitimate dispute regarding their tax liabilities. Consulting a tax professional is advisable for understanding eligibility.
When am I exempt from filling out this form?
You are exempt from filling out IRS 656-B if you are currently under bankruptcy protection, or if your tax liabilities fall below a certain threshold defined by the IRS. Additionally, taxpayers currently under an Installment Agreement may not need to submit this form.
Components of the form
IRS 656-B comprises essential sections that require specific details about the taxpayer's financial situation. This includes income details, expenses, asset disclosures, and whether the taxpayer is open to discussion on their tax liability. Accurate reporting in these sections impacts the likelihood of acceptance of the compromise offer.
What are the penalties for not issuing the form?
Failing to submit IRS 656-B when necessary can lead to significant penalties, including ongoing collection actions by the IRS, additional interest on unpaid taxes, and potential legal actions to recover the debt. Always ensure compliance to avoid undue stress and financial burdens.
What information do you need when you file the form?
When filing IRS 656-B, you will need detailed financial information, such as your income, monthly expenses, assets, and liabilities. It is also important to have any relevant IRS notices or previous tax returns on hand to reference when completing the form.
Is the form accompanied by other forms?
Yes, IRS 656-B may be submitted alongside other forms such as IRS Form 433-A or IRS Form 433-B, which provide additional financial information. Ensuring you include all required forms can improve your offer’s chances of being accepted.
Where do I send the form?
When completed, IRS 656-B should be mailed to the address specified in the instructions included with the form. The mailing address may vary based on the taxpayer's location and whether any payments accompany the submission. Verify the correct address to ensure timely processing.
FAQ about IRS 656-B
What should I do if I realize I made a mistake on my form 656 2015 after submission?
If you discover an error after submitting your form 656 2015, you should file an amended form to correct the mistake. Ensure that you clearly indicate that it is a correction and follow any specific instructions provided for amendments to avoid complications in processing.
How can I check the status of my submitted form 656 2015?
You can verify the status of your submitted form 656 2015 by visiting the appropriate online portal or contacting the relevant office. Look for notifications regarding processing updates and any common e-file rejection codes that may apply to your submission.
Are e-signatures acceptable for form 656 2015?
Yes, e-signatures are generally acceptable for form 656 2015 provided that they meet the electronic signature requirements set forth by the IRS. Ensure that you maintain proper documentation and comply with data security regulations when using e-signatures.
What should I prepare if I receive a notice regarding my form 656 2015 submission?
If you receive a notice about your form 656 2015 submission, review the correspondence carefully to determine what documentation is required. Prepare any necessary evidence and consider consulting a tax professional to assist with your response and ensure compliance.
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