IRS 656-L 2024-2025 free printable template

To request consideration under DATC don t use this form. You must complete a Form 656 Offer in Compromise found in 656-B Offer in Compromise Booklet. Gov/taxpayer-bill-of-rights. Catalog Number 47516R www.irs.gov Form 656-L Rev. 5-2024 Page 2 INSTRUCTIONS FOR FORM 656 L OFFER IN COMPROMISE DOUBT AS TO LIABILITY WHAT YOU NEED TO KNOW What is a Doubt as to Liability DATL Offer in Compromise offer DATL exists where there is a genuine dispute as to the existence or amount of the correct tax debt...under the law. 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. For additional information about your taxpayer rights please see Publication 1 Your Rights as a Taxpayer or visit irs. gov/taxpayer-bill-of-rights. Catalog Number 47516R www.irs.gov Form 656-L Rev. 5-2024 Page 2 INSTRUCTIONS FOR FORM 656 L OFFER IN COMPROMISE DOUBT AS TO LIABILITY WHAT YOU NEED TO KNOW What is a Doubt as to...Liability DATL Offer in Compromise offer DATL exists where there is a genuine dispute as to the existence or amount of the correct tax debt under the law. Form 656-L Offer in Compromise Doubt as to Liability DATL CONTENTS What you need to know. 2 Important information. 2 DATL Pre-qualifier. 4 Form 656-L. 6 IRS contact information If you have questions regarding qualifications for an offer in compromise please call our toll-free number at 1-800-829-1040. You can get forms and publications by...calling 1-800-TAX-FORM 1-800-829-3676 by visiting your local IRS office or at www*irs*gov* Taxpayer resources The Taxpayer Advocate Service TAS is an independent organization within the Internal Revenue Service IRS that helps taxpayers and protects taxpayer rights. We can offer you free help if your tax problem is causing a financial difficulty if you ve tried and been unable to resolve your issue with the IRS or if you believe an IRS system process or procedure just isn t working as it should....Learn more at www. TaxpayerAdvocate. irs. gov or call 877-777-4778. Low Income Taxpayer Clinics LITCs assist individuals whose income is below a certain level who need to resolve tax problems with the IRS* They also provide education outreach and information on taxpayer rights to individuals who speak English as a second language. LITCs represent taxpayers in disputes before the IRS and courts and help taxpayers respond to IRS notices and correct account problems. Services are offered for free...or a small fee. LITCs are independent from the IRS and TAS* For more information or to find an LITC near you see https //www. taxpayeradvocate. irs. gov/litc or IRS Publication 4134 Low Income Taxpayer Clinic List. You can also request Pub. 4134 by calling 800-TAX-FORM 800-829-3676. Your Rights as a Taxpayer The Internal Revenue Code IRC provides taxpayers specific rights. The Taxpayer Bill of Rights groups these rights into ten fundamental rights. See IRC 7803 a 3. IRS employees are responsible...for being familiar with and following these rights.

Instructions and Help about IRS 656-L

How to edit IRS 656-L

How to fill out IRS 656-L

Instructions and Help about IRS 656-L

How to edit IRS 656-L

Editing IRS 656-L can be done using online document editing tools like pdfFiller. These tools allow you to modify existing information on the form, ensuring that your data is accurate before submission. Follow these steps to edit:

1. Upload your form to pdfFiller.
2. Select the text you want to change and make your edits.
3. Save the changes to ensure all information is up to date.

How to fill out IRS 656-L

Completing the IRS 656-L requires careful attention to detail. This form is used for making an offer in compromise with the IRS. To fill it out correctly, follow these steps:

1. Provide personal information, including your name, address, and Social Security Number.
2. Fill out the section detailing your offer and the reason for your request.
3. Include your financial information to support your offer.
4. Sign and date the form to validate your submission.

Latest updates to IRS 656-L

Latest updates to IRS 656-L

The IRS periodically updates tax forms to reflect changes in tax laws and policies. For the most recent updates about IRS 656-L, it is advised to check the official IRS website or reliable tax news outlets. Keeping current with these changes ensures compliance and accuracy in tax filings.

All You Need to Know About IRS 656-L

What is IRS 656-L?

What is the purpose of this form?

Who needs the form?

When am I exempt from filling out this form?

Components of the form

Due date

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?

All You Need to Know About IRS 656-L

What is IRS 656-L?

IRS 656-L is the official form used to apply for an offer in compromise for taxpayers who believe they owe more taxes than they can pay. This form allows individuals to negotiate a reduced tax liability based on their financial situation.

What is the purpose of this form?

The purpose of IRS 656-L is to provide a structure for taxpayers to propose a settlement amount they can afford to pay, which can be less than what they owe. This process helps resolve tax debts and relieve financial burdens while ensuring compliance with IRS regulations.

Who needs the form?

Taxpayers who are unable to pay their full tax liability may need to use IRS 656-L. This could apply to anyone facing financial hardship, such as job loss or significant medical expenses, making it difficult to fulfill their tax obligations.

When am I exempt from filling out this form?

You may be exempt from filling out IRS 656-L if your tax liability is less than $50,000 or if you have no outstanding liabilities. Additionally, if you are currently in bankruptcy or your income meets certain criteria under IRS guidelines, you may not need to file this form.

Components of the form

The IRS 656-L consists of several key components, including personal information about the taxpayer, details about the proposed offer in compromise, and financial disclosures. Each section must be accurately completed to avoid delays in processing.

Due date

The due date for submitting IRS 656-L does not have a specific cutoff time; however, it is recommended to submit the form as soon as possible to expedite the offer in compromise process.

What are the penalties for not issuing the form?

Failing to submit IRS 656-L when applicable can result in continued collection actions by the IRS, including wage garnishments and bank levies. Additionally, the taxpayer may lose the opportunity to negotiate a reduced tax liability.

What information do you need when you file the form?

When filing IRS 656-L, you will need detailed financial information, such as income, expenses, assets, and liabilities. This helps the IRS assess your ability to pay and evaluate your offer effectively.

Is the form accompanied by other forms?

Typically, IRS 656-L should be filed with IRS Form 433-A (OIC), which requires additional financial disclosure information. Ensure you complete all necessary forms for a comprehensive submission.

Where do I send the form?

Submit IRS 656-L to the address specified in the form’s instructions. If you are enclosing a payment with your offer, the mailing address may differ; always verify the correct address on the IRS website to ensure proper processing.

FAQ about IRS 656-L

What should I do if I realize I've made a mistake after filing IRS 656-L?

If you notice an error after submitting your IRS 656-L, you can correct it by filing an amended version of the form. Ensure that you clearly indicate the changes made and reference the original submission. It’s advisable to submit the amendment as soon as the error is identified to prevent complications with your tax records.

How can I check the status of my filed IRS 656-L?

To verify the status of your IRS 656-L submission, you can use the IRS online tools or contact their customer service. Be prepared to provide your identifying information and the details of your submission. Common e-file rejection codes may guide you on troubleshooting any issues encountered during processing.

What should I know about e-signatures on the IRS 656-L?

E-signatures are permitted when filing IRS 656-L electronically, as long as the signature complies with IRS standards for authenticity and security. Retain copies of your e-filed documents for your records, as this helps maintain data security and supports claims in case of audits or inquiries.

What common errors should I avoid when filing IRS 656-L?

Common errors when filing your IRS 656-L include incorrect personal information and miscalculating your tax obligations. To avoid these mistakes, double-check all entries and ensure compliance with IRS guidelines. Utilizing IRS resources can also help in confirming that your submission adheres to the required standards.

What should I do if I receive a notice from the IRS regarding my IRS 656-L?

If you receive a notice from the IRS concerning your IRS 656-L, it's crucial to read it carefully and understand the IRS's concerns. Gather all pertinent documentation related to your submission and respond promptly if required. This will ensure that you address any issues effectively and maintain compliance with IRS regulations.