Get Irs Form 656-b, Offer In Compromise Instructions

Filling out the IRS Form 656-B for an Offer in Compromise can be a vital step for individuals who cannot pay their tax liabilities. This guide provides clear, step-by-step instructions on how to accurately complete the form online, ensuring all required information is collected and submitted correctly.

Follow the steps to complete the IRS Form 656-B online successfully.

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Begin with Section 1, Personal Information. Here, you will fill in your first name, last name, social security number or ITIN, and contact details. Ensure all information is accurate and complete.
3. Move to Section 2, Employment, Business Income, and Education Information. Provide details about your current employer or business, position, and the highest level of education completed.
4. In Section 3, General Financial Information, list all bank accounts, vehicles, securities, and any other financial assets. Attach the required documentation to support this information.
5. Go to Section 4, Asset and Liability Analysis. Calculate and enter total asset values as requested, noting any liabilities. This is essential for establishing your financial situation.
6. Proceed to Section 5, Monthly Household Income and Expense Analysis. Detail your monthly net income from all sources and outline monthly expenses to indicate your financial capacity.
7. Complete Section 6, Three-Year Income Summary. Summarize your income for the current year and the two previous years to provide a comprehensive view of your financial history.
8. In Section 7, Basis for the Offer, clearly state the reasons for your Offer in Compromise, highlighting any exceptional circumstances impacting your financial capacity.
9. Next, Section 8 focuses on Offer in Compromise Payment Information. Indicate the amount owed to the Franchise Tax Board and the offer amount you are proposing. Remember not to submit funds until instructed.
10. Finally, review Section 9, Statement of Agreement. Ensure all fields are accurately completed and sign the document. Once satisfied, you can save changes, download, print, or share the form as needed.

Complete your IRS Form 656-B online today to take the next step toward resolving your tax liabilities.