Catalog Number 16728N www.irs.gov
Form
656 (Rev. 4-2024)
Page 5
Section 7 (Continued) Offer Terms
c) I voluntarily submit the payments made on this offer and understand that they will not be returned even if I
withdraw the offer or the IRS rejects or returns the offer. Unless I designate how to apply each required payment
in Section 5, the IRS will apply my payment in the best interest of the government, choosing which tax years and
tax debts to pay off. The IRS will also keep my application fee unless the offer is not accepted for processing.
IRS will keep my payments,
fees, and some refunds.
d) I understand that if I checked the Low-Income Certification in Section 1, then no payments are required. If I
qualify for the Low-Income Certification and voluntarily submit payments, all money will be applied to my tax debt
and will not be returned to me.
e) Treas. Reg. section 301.7122(e)(5) states, in part, that acceptance of an offer in compromise will conclusively
settle the liability for the tax periods specified in the offer. To enforce the regulation as a contract term, I agree
that I cannot file an amended return for the tax years listed on Form 656 after the offer is accepted. Further, I
agree that I will not file an amended return for the tax years listed on Form 656 after I have submitted my offer
and while my offer remains pending [see section 7(j) below] with the Service. The filing of the amended return
could be considered grounds for termination. In addition, any refunds related to an amended return filed for a tax
year which has an ending date prior to offer acceptance will be offset to the tax liability. If I receive a refund prior
to offer acceptance, or based on an amended return for any tax periods extending to the date my offer is
accepted, I will return the refund within 30 days of receiving the refund. The IRS will keep any refund, including
interest, that I might be due for tax returns filed through the date the IRS accepts my offer. Systemic offset of
overpayments will continue in accordance with IRC 6402(a) prior to the offer acceptance date. I understand that
my tax refund may be offset to the tax liability while the offer is pending, but that assistance could be available for
taxpayers (other than businesses) facing an economic hardship.
f) I understand that the amount I am offering may not include part or all of an expected or current tax refund,
money already paid, funds attached by any collection action, or anticipated benefits from a capital or net operating
loss.
g) 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.
h) The IRS will keep any payments that I make related to this offer. I agree that any funds submitted with this offer
will be treated as a payment. I also agree that any funds submitted with periodic payments made after the
submission of this offer and prior to the acceptance, rejection, or return of this offer will be treated as payments.
i) 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.
j) Once an authorized IRS official signs this form, my offer is considered pending as of that signature date and it
remains pending until the IRS accepts, rejects, or returns my offer, or I withdraw my offer. An offer is also
considered pending for 30 days after any rejection of my offer by the IRS, and during the time that any rejection of
my offer is being considered by the Appeals Office. An offer will be considered withdrawn when the IRS receives
my written notification of withdrawal by personal delivery or certified mail or when I inform the IRS of my
withdrawal by other means and the IRS acknowledges in writing my intent to withdraw the offer.
Pending status of an offer and
right to appeal
k) I waive the right to an Appeals hearing if I do not request a hearing in writing within 30 days of the date the IRS
notifies me of the decision to reject the offer.
l) As both an express condition and as a contractual promise, I will strictly comply with all provisions of the internal
revenue laws, including requirements to timely file tax returns and timely pay taxes for the five year period
beginning with the date of acceptance of this offer and ending through the fifth year. I agree to promptly pay any
liabilities assessed after acceptance of this offer for tax years ending prior to acceptance of this offer that were not
otherwise identified in Section 1 or Section 2 of this agreement. I also understand that during the five year period I
cannot request an installment agreement for unpaid taxes incurred before or after the accepted offer. I understand
that I cannot request an offer for a tax liability during the five year period. If this is an offer being submitted for joint
tax debt, and one of us does not comply with future obligations, only the non-compliant taxpayer will be in default
of this agreement. An accepted offer will not be defaulted solely due to the assessment of an individual shared
responsibility payment. I understand failure to pay any restitution-based assessments will provide basis for the
default of my offer acceptance for administrative tax periods included on this Form 656.
I must comply with my future
tax obligations and understand
I remain liable for the full
amount of my tax debt until all
terms and conditions of this
offer have been met.
m) 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.
n) Once the IRS accepts my offer in writing, I have no right to challenge the tax debt(s) in court or by filing a
refund claim or refund suit for any liability or period listed in Section 1 or Section 2, even if the IRS defaults or
rescinds the offer.