IRS Form 656

2025 Printable Template

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Form last updated: 03/2024. Please verify this is the current version before use.

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What is a 656 used for?

Form 656 is used by taxpayers to apply for an Offer in Compromise (OIC), which allows them to settle their tax liabilities for less than the full amount owed. This form is part of a process that helps taxpayers who are unable to pay their full tax debt due to financial hardship.

Who needs to fill out a 656 form

Taxpayers who cannot pay their full tax liability and meet the IRS's criteria for an Offer in Compromise.

How to fill out a 656 online?

Follow these steps to complete your 656 form online.

Step 1
Step 1
Download Form 656 from the IRS website or access it through a PDF editor.
Step 2
Step 2
Fill in your personal information and details about your tax debt.
Step 3
Step 3
Select the appropriate reason for your offer in compromise.
Step 4
Step 4
Include the required financial statements.
Step 5
Step 5
Submit the application fee and initial payment if applicable.
Step 6
Step 6
Mail the completed form to the IRS address specified in the instructions.

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Frequently Asked Questions

Find quick answers to common questions about our PDF editor.

The application fee is $205 unless you qualify for Low-Income Certification, in which case the fee may be waived.

You must include complete financial statements, either Form 433-A(OIC) for individuals or Form 433-B(OIC) for businesses.

You can file based on doubt as to collectibility, doubt as to liability, or exceptional circumstances that would cause economic hardship.

Yes, you need to provide a written statement and any relevant documentation, such as medical records.

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