How to Complete Form 656 OIC

Signing the Offer Form 656 Wrap-up In Section 8 is where you're going to sign and date the form. You are signing under penalties of perjury, so you'll want to make sure everything in here is correct, and if you do decide to pay someone to prepare this form for you, make sure they fill out the Paid Preparer's Section. The rest of this form is for IRS use only. Please don't forget to sign your offer! This is actually a common error. Now, an Offer in Compromise does Suspend the Collection Statute Expiration Dates while your Offer is being investigated by the IRS. If the IRS rejects an Offer and you do not appeal the rejection, the Collection Statute Expiration Date is extended for another 30 days. If IRS rejects an Offer and you file a timely appeal, then the Collection Statute Expiration Date is extended for the period during which the Independent Office of Appeals, reviews the rejection. You want to make sure if you're submitting an Offer in Compromise that: 1. You're submitting it properly and including all information so it can be accepted and 2. You're submitting something that has a possibility of being accepted and that you can pay the Offer amount and stay current with your tax obligations as well. So be very confident that you're submitting a proper OIC. Thanks for watching - - Music plays as this section concludes - -