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Section 3 Amount of the Offer
I offer to pay $
Must be $1 or more and payable within 90 days of the notification of acceptance, unless an alternative payment term is approved at the time the offer is
accepted. Don't send any payment with this form. If you don't offer at least $1, your offer will be returned without consideration.
Section 4 Terms
By submitting this offer, I have read, understand, and agree to the following terms and conditions:
Terms, Conditions, and Legal a) The IRS will apply payments made under the terms of this offer in the best interest of the government. I request
Agreement that the IRS accept the offer amount listed in this offer application as payment of my outstanding tax debt arising
under Title 26 (including interest, penalties, and any additional amounts required by law) as of the date listed on
this form.
b) I voluntarily submit all payments made on this offer.
IRS will keep my payments c) The IRS will keep all payments and credits made, received, or applied to the total original tax debt before I
and fees send in the offer or while it is under consideration, including any refunds from tax returns and/or credits from tax
years prior to the year in which the offer was accepted.
d) The IRS may levy under section 6331(a) up to the time that the IRS official signs and acknowledges my offer
as pending, which is accepted for processing, and the IRS may keep any proceeds arising from such a levy.
e) If the Doubt as to Liability offer determines that I don't owe the taxes, or the IRS ultimately over-collected the
assessed tax liability, the IRS will return the over-collected amount to me, unless such refund is legally prohibited
by statute. If my offer is accepted and my final payment is more than the agreed amount, the IRS will not return
the difference, but will apply the entire payment to my tax debt.
f) The IRS will keep any monies it has collected prior to this offer. Under section 6331(k), the IRS may levy on my
property and rights to property up to the time that the IRS official signs and acknowledges my offer as pending.
The IRS may keep any proceeds arising from such a levy. No levy will be issued on individual shared
responsibility payments. However, if the IRS served a continuous levy on wages, salary, or certain federal
payments under sections 6331(e) or (h), then the IRS could choose to either retain or release the levy.
I agree to the time extensions g) To have my offer considered, I agree to the extension of time limit provided by law to assess my tax debt
allowed by law (statutory period of assessment). I agree that the date by which the IRS must assess my tax debt will now be the
date by which my debt must currently be assessed plus the period of time my offer is pending plus one additional
year if the IRS rejects, returns, or terminates my offer, or I withdraw it. [Paragraph (l) of this section defines
pending and withdrawal]. I understand I have the right not to waive the statutory period of assessment or to limit
the waiver to a certain length or certain periods or issues. I understand, however, the IRS may not consider my
offer if I decline to waive the statutory period of assessment or if I provide only a limited waiver. I also understand
the statutory period for collecting my tax debt will be suspended during the time my offer is pending with the IRS,
for 30 days after any rejection of my offer by the IRS, and during the time any rejection of my offer is being
considered by the Independent Office of Appeals.
I understand I remain h) The IRS cannot collect more than the full amount of the tax debt under this offer.
responsible for the full
amount of the tax liability i) I agree that I will remain liable for the full amount of the tax liability, accrued penalties and interest, until I have
met all of the terms and conditions of this offer. Penalties and interest will continue to accrue until all payment
terms of the offer have been met. If I file for bankruptcy before the terms and conditions of the offer are met, I
agree that the IRS may file a claim for the full amount of the tax liability, accrued penalties and interest, and that
any claim the IRS files in the bankruptcy proceeding will be a tax claim.
j) I understand the tax I offer to compromise is and will remain a tax debt until I meet all the terms and conditions
of this offer. If I file bankruptcy before the terms and conditions of this offer are completed, any claim the IRS files
in bankruptcy proceedings will be a tax claim.
k) Once the IRS accepts the offer in writing, I have no right to contest, in court or otherwise, the amount of the tax
debt.
Pending status of an offer and l) The offer is pending starting with the date an authorized IRS official signs this form. The offer remains pending
right to appeal until an authorized IRS official accepts, rejects, returns, or acknowledges withdrawal of the offer in writing. If I
appeal an IRS rejection decision on the offer, the IRS will continue to treat the offer as pending until the
Independent Office of Appeals accepts or rejects the offer in writing. If an offer is rejected, no levy may be made
during the 30 days of rejection. If I don't file a protest within 30 days of the date the IRS notifies me of the right to
protest the decision, I waive the right to a hearing before the Independent Office of Appeals about the offer.
I understand if IRS fails to m) I understand that my offer will be accepted, by law, unless the IRS notifies me otherwise, in writing, within 24
make a decision in 24-months months of the date my offer was received by IRS centralized offer in compromise unit, located in Brookhaven, NY.
my offer will be accepted See mailing instructions at the bottom of this form on page 9.
I understand what will happen n) If I fail to meet any of the terms of this offer, the IRS may levy or sue me to collect any amount ranging from the
if I fail to meet the terms of unpaid balance of the offer to the original amount of the tax debt (less payments made) plus penalties and interest
my offer (e.g. default) that have accrued from the time the underlying tax liability arose. The IRS will continue to add interest, as
required by Section § 6601 of the Internal Revenue Code, on the amount the IRS determines is due after default.
I understand the IRS may file o) The IRS may file a Notice of Federal Tax Lien during consideration of the offer or for offers that will be paid
a Notice of Federal Tax Lien over time. If the offer is accepted, the tax lien(s) for the periods and taxes listed in Section 1 will generally be
on my/our property released within 45 days after the final payment has been received and verified. The time it takes to transfer funds
to the IRS from commercial institutions varies based on the form of payment. If I have not finished paying my offer
amount, then the IRS may be entitled to any proceeds from the sale of my property. The IRS will not file a Notice
of Federal Tax Lien on any individual shared responsibility debt.
Catalog Number 47516R www.irs.gov Form 656-L (Rev. 5-2024)
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