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...

How to fill out form offer in compromise

How to fill out IRS 656-L

1. Download IRS Form 656-L from the official IRS website.
2. Read the instructions carefully before filling out the form.
3. Provide your personal information, including your name, address, and Social Security Number (SSN) or Employer Identification Number (EIN).
4. Indicate the type of tax the offer pertains to (e.g., individual, corporation).
5. Specify the tax periods you are seeking an offer for.
6. Fill in the total amount owed for each period.
7. Explain why you believe the IRS should accept your request for an offer in compromise.
8. Sign and date the form.
9. Submit the completed form to the appropriate address provided in the instructions.

Who needs IRS 656-L?

1. Taxpayers who wish to settle their tax debt for less than the full amount owed.
2. Individuals who cannot pay their tax debt and are looking for relief options.
3. Taxpayers seeking to resolve their tax liability due to economic hardship.

Video instructions and help with filling out and completing offer compromise

Instructions and Help about irs form 656 pdf

Hey guys my name is Anthony Fontana I'm a CPA with ea tax resolutions in this video we're going to be going over line by line in detail how to fill out the iris form 656 to submit an offer in compromise if at any point in this video you think this is way too much, and you want to hire a professional well you're in luck I'm here to help you out a link in the description you can schedule appointment with me, we charge a flat 250, and we go through your case, and we give you your options see if you even qualify for something like this all right so the 656 is the form you need to fill out definitely to file an offer and compromise, and it lays out the terms of the offer it is basically the con it's not basically it is the contract for the offer now if the offer changes later when the IRS maybe discovers something new or things change then they will amend the 656 later, but you will need to submit the form 656 to file an offer and compromise all right so here it is the 656...

People Also Ask about form 656 irs

How do I complete an offer in compromise IRS?

You must provide a written statement explaining why the tax debt or portion of the tax debt is incorrect. 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.

Can I file my own Offer in Compromise?

You can apply for an OIC directly or with the help of a tax or legal professional. Whether you go at it on your own or submit it with the help of a professional, use the Offer in Compromise Application Checklist in the IRS Form 656 Booklet.

How do you fill out an Offer in Compromise?

What Are the Specific Steps for an Offer in Compromise? Gather personal and financial information. Fill out all forms: Form 656, Form 433 A, and Form 433 B. Attach all required documents. Pay the application fee.

How do I get an OIC approved by the IRS?

To qualify for an OIC, the taxpayer must have filed all tax returns, have received a bill for at least one tax debt included on the offer, made all required estimated tax payments for the current year, and if the taxpayer is a business owner with employees, the taxpayer must have made all required federal tax deposits

How much should I offer the IRS in an offer in compromise?

There are 2 basic Offer in Compromise formulas: On a 5-month repayment plan: (Available Monthly Income x 12) + Value of Personal Assets. On a 24-month repayment plan: (Available Monthly Income x 24) + Value of Personal Assets.

How long does it take for the IRS to accept an OIC?

Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC). The process can take much longer if you have to dispute the examiner's findings or appeal their decision.

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What is IRS 656-L?

IRS 656-L is a form used by taxpayers to request a waiver of the penalty for failure to file a tax return or for failure to pay taxes owed. It is typically used in situations where the taxpayer believes they have reasonable cause for not meeting their tax obligations.

Who is required to file IRS 656-L?

Taxpayers who have not filed their tax returns or who have not paid their taxes and believe they have reasonable cause for their failure to do so are required to file IRS 656-L.

How to fill out IRS 656-L?

To fill out IRS 656-L, you must provide your personal information, including your name, address, and social security number. Then, explain your reasonable cause for failing to file or pay and attach any supporting documentation.

What is the purpose of IRS 656-L?

The purpose of IRS 656-L is to allow taxpayers to formally request an abatement of penalties associated with the failure to file or pay taxes timely by demonstrating reasonable cause.

What information must be reported on IRS 656-L?

The form requires the taxpayer's identification details, a detailed explanation of the reasonable cause for non-compliance, and any supporting documentation that substantiates the claim.