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Rochester New York Form 656-L: What You Should Know
Compromise (Doubt as to liability), will be used if a taxpayer fails to dispute the amount of the tax debt within an established grace period as outlined in IRS Circular A330, IRS Procedures for Disputes with the Internal Revenue Service. No action by the taxpayer is necessary or allowed for you to accept an offer filed under the previous method of payment for payment purposes. Example: A taxpayer made two offers of compromise, which are both under the previous method of payment. The tax liability was 1 million on April 1, 2010, and 2 million on December 31, 2010, with amounts due to the IRS on March 31, 2011, May 31, 2011, and August 31, 2011. If the taxpayer makes an offer in 2014, the IRS has up until April 15, 2014, to accept the offer, or it will not be accepted. At the close of business on April 15, 2014, the taxpayer may file paper Form 656-L by completing the following steps: (a) Complete and submit Form 656-L, Offer in Compromise (Doubt as to Liability), online, printable, fillable (b) Fax the completed Form 656-L to the address on the line corresponding to your state, to include a copy for mailing to the IRS. You will receive a confirmation notice stating whether there were any IRS inquiries. When the amount due to the IRS is less than 5,000, send the completed Form 656-L, Offer in Compromise (Doubt as to Liability) to the taxpayer as instructed. When the amount due to the IRS is more than 5,000, send the completed Form 656-L, Offer in Compromise (Doubt as to Liability) to the taxpayer and provide a credit card number on which the taxpayer has full access. (For example: 123456789). If this credit card number is not a valid card, your taxpayer account is immediately closed. Make sure there are no lines on your tax return that do not have a taxpayer or address associated with them.
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