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Form 656-B Birmingham Alabama: What You Should Know
It will also allow you to specify the taxpayer. Form 656-B is used to enter into an agreement between the taxpayer and the “U.S. IRS”. When you fill out Form 656, you are telling the IRS your financial situation. You are telling the IRS that you are willing to negotiate your tax situation and that you wish to settle on a monetary offer. The offer amount you enter on Form 656 is for “the IRS” but the “U.S. IRS” will only get what it asks for if it accepts the offer. If the IRS does not agree to the settlement offer, it will return the form to you. The more money you offer, the greater the amount you have to pay. What's a “settlement offer?”. A settlement offer is used by a taxpayer (or taxpayers) to get the IRS to reduce or eliminate all or part of one or more of a taxpayer's tax liabilities. The IRS asks for the settlement offer based on IRS guidance regarding the taxpayer's financial condition and financial situation. The IRS also uses settlements with other government agencies to help settle tax problems with taxpayers. This is often required in certain circumstances involving tax shelters, non-profit organizations, and charitable contributions. The IRS uses the settlements to help taxpayers resolve tax issues with the IRS and, with the consent of the taxpayer, to enter into other agreements, such as joint tax returns and certain joint income tax returns. Some settlements with other governments involve an agreement on the amount of the taxes owed. Other settlements involve the amount of the penalties. Some settlement agreements, such as tax evasion agreements, are entered into to obtain cooperation or a statement of intent from the taxpayer. The IRS uses the agreements to collect any remaining taxes owed or penalties under the agreement. Form 8809.8 (Notice to Confidential Employees of the U.S. Government Regarding Settlement of their Tax Liabilities (PDF)) states that the taxpayer will furnish to the Tax Division of a government agency the name and address of an individual or entity for whom all or part of the taxpayer's taxes are owed and the taxpayer's consent for such information to be furnished to such government agency. Under no circumstances will the taxpayer be required to furnish more than one address. When entering the settlement agreement on Form 8809.
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