Form 656 2025

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Normally, taxation is pretty cumbersome. The importance of the event puts some pressure on the individual, and filling out the form can be challenging. Each character in the Form 656 for 2025 matters at such a critical moment, so filling out a printed form might take much more time and effort than an electronic one. To make this process more efficient, use DocHub and complete your tax year easily.

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Each Form 656 will require the $205 application fee and initial payment unless you are an individual and meet the Low-Income Certification guidelines. require the $205 application fee and initial payment.
Youre eligible to apply for an offer in compromise if you: Filed all required tax returns and made all required estimated payments. Arent in an open bankruptcy proceeding. Have a valid extension for a current year return (if applying for the current year).
People who qualify for the program Having IRS debt of fifty thousand dollars or less, or the ability to repay most of the amount. Being able to repay the debt over a span of 5 years or less. Not having fallen behind on IRS tax payments before. Being ready to pay as per the direct payment structure.
How much will the IRS settle for? The IRS will often settle for what it deems you can feasibly pay. To determine this, the agency will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more.
The application fee for an offer in compromise is $205. Low-income taxpayers dont have to pay this fee, and they should check if they meet the definition of low-income in the instructions for Form 656, Offer in Compromise.
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People also ask

Use Form 656 when applying for an offer in compromise (OIC), which is an agreement between you and the IRS that settles your tax liabilities for less than the full amount that you owe.
Each Form 656 will require the $205 application fee and initial payment unless you are an individual and meet the Low-Income Certification guidelines.

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