![]() Note: Either section 1 (Individual Information) OR section 2 (Business Information) should be completed on each Form 656. Both sections should not be combined on one Form 656. Two separate Forms 656, one for the business or corporation liabilities and one for the individual liabilities, when the intent is to compromise both if:Īn individual is submitting offers to compromise both individual and corporate liabilities Two taxpayers have joint liabilities and one or both also have separate liabilities.Two taxpayers have separate liabilities.Two separate Forms 656 with two separate application fees and two offer payments if: One Form 656 with one application fee and offer payment if you are compromising either a partnership or corporate liability. One Form 656 with one application fee and one offer payment if you are compromising either your individual tax liability or two taxpayers owe only joint liabilities. Note: This includes divorced, separated, or married couples living apart if all liabilities are joint and they choose to file a joint offer together. The following number of Forms 656, application fees, and offer payments must be sent with the offer (unless payment is not required because you qualify for the Low Income Certification box in Section 1 of the Form 656 and check the box): The number of Forms 656, application fees, and offer payments required are based on the types of taxes you want to compromise. We will notify you in writing of our determination. If we don’t receive the information we request from you during the offer processing or investigation, we may return your offer without appeal rights. The OE or OS will contact you by phone or mail to request any additional information that is needed to investigate the offer. ![]() Your OIC will ultimately be assigned to an offer examiner (OE) in a Centralized (COIC) office or an offer specialist (OS) in a Field (FOIC) office for investigation. The letter might also request that you send additional information. If we can process your offer, we will send you a letter with the estimated date of contact. ![]() Generally, the initial payment will be applied to your tax liability. If we can’t process your offer, we will send your OIC package (including the application fee) back to you with a letter explaining the reason. After we receive your Form 656 and supporting documentation with the required initial payment and application fee or low-income waiver, we will review it to ensure it can be processed. The complete offer investigation can take up to 24 months, depending on inventory levels and case complexity. Doubt as to liability cannot be considered if the tax debt has been established by a final court decision or judgment.An offer based on doubt as to liability will only be considered for those periods/years identified in the offer.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. You must provide a written statement explaining why the tax debt or portion of the tax debt is incorrect. ![]() To request consideration under doubt as to collectability, do not use the Form 656-L. If you agree that you owe the tax but cannot afford to pay do not file a Form 656-L.If you are unable to pay the amount you owe through an installment agreement and/or equity in your assets, complete Form 656- Offer in Compromise located within Form 656-B, Offer in Compromise Booklet PDF.ĭoubt as to Liability Offer in Compromise Helpful Hints: 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) PDF.ĭoubt as to collectability is when you agree with the amount due, however you are unable to pay the entire amount owed. Understanding this difference will help you determine which application form is the most appropriate for your situation.ĭoubt as to liability is when there is a genuine dispute as to the existence or amount of the correct tax debt under the law. Prior to filing a Doubt as to Liability Offer in Compromise you should understand the difference between doubt as to liability and doubt as to collectability.
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