Get Irs 656 2021

The IRS Form 656 is a crucial document for individuals and businesses seeking to settle their tax liabilities through an offer in compromise. This guide provides clear, step-by-step instructions to help you effectively complete the form online.

Follow the steps to successfully complete your IRS 656 form online.

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Begin by entering the date the IRS received your application, as mentioned on the IRS communication regarding your tax debt.
3. In Section 1, provide your personal information, including your full name and Social Security Number (SSN). If filing jointly, include your partner's information as well.
4. Indicate your home physical address and mailing address if they differ. Check the box if this is a new address and specify if you want your records updated.
5. List the individual tax periods for which you are seeking the offer in compromise. Be specific about the tax types and periods.
6. If you qualify for Low-Income Certification, indicate this by checking the appropriate box. Include the required documentation to substantiate your claim.
7. In Section 2, if you are representing a business, provide the business name and contact information, including the Employer Identification Number (EIN) and tax periods.
8. In Section 3, choose the reason for your offer, selecting from doubt as to collectibility or exceptional circumstances, and provide a detailed explanation if needed.
9. Select your payment terms in Section 4, indicating whether you prefer a lump sum or periodic payments, and include the appropriate amounts.
10. Complete Section 5 by designating how you would like your payments to be applied to your tax liability and indicate if you will be using the Electronic Federal Tax Payment System (EFTPS).
11. Fill in Section 6 addressing your source of funds and making sure you meet the filing and tax payment requirements.
12. Review the terms and conditions in Section 7, ensuring you understand the implications of your offer and your obligations.
13. Finally, sign the document in Section 8, providing your contact information and certifying the accuracy of your submission.
14. Once completed, save your changes in the document editor. You can then download, print, or share the filled-out Form 656 as needed.

Take the first step in settling your tax obligations by filling out the IRS 656 online today.