# Form 656

URL: https://pdf.net/pdf-forms/tax-forms/form-656
Category: Tax Forms
Attributes: Official IRS form, Monthly top‑searched

Form 656 is used to apply for an Offer in Compromise (OIC) with the IRS, which allows you to settle your tax debt for less than the full amount owed.

Apply easily with our editable Form 656. Fill out online in our PDF editor and download it to your device. However, make sure to read the instructions carefully and see what other documents you need for a successful application.

## Versions

- 2026 — [download PDF](https://cdn.sanity.io/files/i16te7yp/production/439b999dc8e303af0a7e488e19fc41e10c686f34.pdf)

## How to Fill Out Form 656

1. Open IRS Form 656 in our PDF editor.
2. Include your information and answer whether you qualify for Low-Income Certification.
3. Select your reason for the offer according to the Form 656 instructions.
4. Choose a payment option and make your offer (must be more than $0).
5. Read the terms and sign the document.

## Facts

### What Is Form 656 Used For?

Form 656 is used to apply for an Offer in Compromise, which allows you to settle your tax debt for less than you actually owe. This is typically done when you’re experiencing financial hardship and can’t pay your debts, or when full payment would cause you economic hardship.

### Who Should Use Form 656?

Individuals or businesses who meet the criteria listed above should use IRS Form 656 to request a compromise and offer the amount to pay instead of what they owe.

### When Is Form 656 Due?

There is no specific due date for Form 656, as you can file it whenever you owe tax debt that you can’t pay in full.

### What Happens If Form 656 Is Not Submitted?

If Form 656 is not submitted, you’ll be expected to pay your tax debt in full without any compromises, as the IRS will not be informed of any hardships you may be experiencing. Note that submitting Form 656 also pauses IRS collection activity while your offer is under review. Without it, collections continue uninterrupted.



On the other hand, if the IRS rejects your Offer in Compromise, you have 30 days from the date of the rejection letter to appeal the decision through the IRS Office of Appeals. During the appeal, you can present additional information or arguments supporting your offer.

### How and Where Do I File Form 656?

You should file Form 656 with the IRS using one of the addresses provided in the Form 656 Booklet. However, you need to submit the whole package for the form to count, including:

- Form 656
- Form 433-A (OIC) for wage earners and self-employed individuals, if applicable
- Form 433-B (OIC) for businesses, if applicable
- $205 application fee (not required if you meet Low-Income Certification Guidelines)
- Initial offer payment (not required if you meet Low-Income Certification Guidelines)

## Related forms

- [Form 433-A](https://pdf.net/pdf-forms/tax-forms/form-433-a)
- [Form 9465](https://pdf.net/pdf-forms/tax-forms/form-9465)
- [Personal Financial Statement Form](https://pdf.net/pdf-forms/financial-forms/personal-financial-statement)
- [1040 Form](https://pdf.net/pdf-forms/tax-forms/1040-form)
- [ Form 843](https://pdf.net/pdf-forms/tax-forms/form-843)