Catalog Number 47516R www.irs.gov
656-L (Rev. 1-2018)
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. Do not send any payment with this form. If you do not 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.
IRS will keep my payments
b) I voluntarily submit all payments made on this offer.
c) The IRS will keep all payments and credits made, received, or applied to the total original tax debt before I 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 do not owe the taxes, or the IRS ultimately over-collected the
compromised tax liability, the IRS will return the over-collected amount to me, unless such refund is legally
prohibited by statute.
f) 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. No levy may be made during the time an offer in
compromise is pending.
I agree to the time extensions
allowed by law
g) To have my offer considered, I agree to the extension of time limit provided by law to assess my tax debt
(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
I understand I remain
responsible for the full
amount of the tax liability
h) The IRS cannot collect more than the full amount of the tax debt under this offer.
i) I understand I remain responsible for the full amount of the tax debt, unless and until the IRS partially or fully
abates the tax, or accepts the offer in writing and I have met all the terms and conditions of the offer. The IRS will
not remove the original amount of the tax debt from its records until I have met all the terms of the offer.
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
Pending status of an offer and
right to appeal
l) The offer is pending starting with the date an authorized IRS official signs this form. The offer remains pending
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 Appeals
Office 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 do not 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 Appeals Office about the offer.
I understand if IRS fails to
make a decision in 24-months
my offer will be accepted
m) I understand under Internal Revenue Code (IRC) § 7122(f), my offer will be accepted, by law, unless IRS notifies
me otherwise, in writing, within 24 months of the date my offer was initially received.
I understand what will happen
if I fail to meet the terms of
my offer (e.g. default)
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
unpaid balance of the offer to the original amount of the tax debt (less payments made) plus penalties and interest
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 of the IRS determines is due after default.
o) The IRS may file a Notice of Federal Tax Lien to protect the Government's interest during the offer investigation.
The tax lien will be released 30 days after the payment terms have been satisfied and the payment has been
verified. If the offer is accepted, the tax lien will be released within 30 days of when the payment terms have been
satisfied and the payment has been verified. The time it takes to verify the payment varies based on the form of
I understand the IRS may file
a Notice of Federal Tax Lien
on my/our property