Divide this text into sentences and correct mistakes: Hey, this is very new in tax court and today I'm going to talk to you about the IRS offering compromise program. The offer and compromise program is a program where you're telling the Internal Revenue Service (IRS) that you cannot pay the whole balance, but you want to make an offer and make a deal to pay a certain amount of money if the IRS agrees to write off the remaining balance and never attempt to collect it again. The offer and compromise program is pretty strict and has some requirements. Let's say you owe $100,000, and the IRS agrees to write off $80,000, leaving you with a remaining payment of $20,000. Within five years, if you have any other problems with the IRS, such as not filing your return on time or accruing another balance, the IRS can put the $80,000 back on your account and come back to collect it. Therefore, it's crucial that if you make an offer in compromise to the IRS and they accept it, you pay the balance off and stay clean for five years. There are two types of offers and compromises: doubt as to collectability and doubt as to liability. The first one, doubt as to collectability, means you owe the balance but don't think you can pay it. This could be due to factors such as your age (being close to retirement with limited future income), disability, loss of ability to work due to an accident or other means, loss of license, or working in an industry that is no longer viable. Doubt as to liability means you feel you don't really owe the tax, but you're unable to prove it at the moment. In this case, you want to work out an agreement...
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Irs 656 march 2025 Form: What You Should Know
You are eligible for an offer in compromise (OIC) if you meet the following pre-qualified Offer In Compromise (OIC) eligibility requirements: Financial Information is necessary to prove your claim for an OIC when you file a Form 656. The financial information must not be the same as the information required for a Form 1040NR. If the financial information does not meet these requirements, your claim will be rejected. The financial information must be your most recent income tax return, and it must be filed within 3 years of your latest income tax return. An individual who is self-employed, and whose income exceeds the threshold amount, will file a tax return on April 15. An individual who is not self-employed, and whose income exceeds the threshold, will file a tax return as of a later date. Only one income tax return filed for each year is required for an OIC. Only one income tax return has to be filed to obtain an OIC, however, you do not have to report every income and employment income on that tax return, only the income and employment income that meet the qualifying criteria. Tax Filing Status You are a new tax filer if you filed a Form 646 or a return for the first time since March 31, 2019. For the 2025 tax year, you may be eligible if your income exceeds the tax filing threshold for your category, and you filed a return for the first time since you became eligible for an offer in compromise. Enter the Social Security Number of the applicant if you know it. You can use the SSN to verify the applicant's identity and verify income. Do not verify the name with the Social Security Administration. You may also use the applicant's date of birth (MM-DD-YYYY) to verify the applicant's identity. The Social Security Administration may verify the applicant's date of birth based on the applicant's SSN. Please note that your SSN/date of birth must be current and valid. You can find more information on SSNs and dates of birth on IRS.gov. Enter the Taxpayer Identification Number (TIN) or Taxpayer Identification Number (TIN) for the applicant if you know it. This information can be found on IRS.gov.
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