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Federal input screens

Screen 656 - Offer in Compromise (1040)

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Overview

Use this screen to enter information and complete Form 656, Offer in Compromise.

Form 656 General Information

Enter information in this section to complete the offer application.
note
You must complete the 433 screen before completing the 656 screen. On the 433 screen, enter
2
 in the
Type of Collection Information Statement
 field.
T, S, J
Enter
T
,
S
, or
J
 to indicate whether the person filing the Form 656 is the taxpayer or the spouse, or if it is being filed jointly.
note
This field requires data to calculate Form 656.
Tax forms and periods included in OIC: 1040 - year(s)
Use this statement box to enter all years of Form 1040 income tax return account balances to be included in the Offer in Compromise.
Tax forms and periods included in OIC: TFRP - corporation/period(s)
Use the fieldview to select the corporation for which the client was assessed to be the responsible person for the Trust Fund Recovery Penalties (TFRP). Also, use the statement box to enter all quarterly periods of TFRP account balances to be included in the Offer in Compromise.
Tax forms and periods included in OIC: 941 - period(s)
Use this statement box to enter all quarterly periods of Form 941 employer's federal tax return account balances to be included in the Offer in Compromise.
Tax forms and periods included in OIC: 940 - year(s)
Use this statement box to enter all years of Form 940 employer's federal unemployment (FUTA) tax return account balances to be included in the Offer in Compromise.
Tax forms and periods included in OIC: Other tax(es) - type(s) and period(s)
Use this statement box to enter all types and all corresponding periods of other previously not entered tax return account balances to be included in the Offer in Compromise.
Explanation of circumstances
Use this statement box to enter a description of unplanned events or special circumstances where paying the full amount or the minimum offer amount might impair the ability of the clients to provide for themselves or their family.
All required tax returns filed
Enter
X
 to indicate that the client certifies that he or she has filed all required tax returns.
Not required to file tax return for these years
Use this statement box to describe the years for which the client certifies that he or she wasn't required to file a tax return.
Made all required estimated tax payments for the current tax year
Enter
X
 to indicate that the client certifies that he or she has made all required estimated tax payments for the current year.
Not required to make any estimated tax payments for the current tax year
Enter
X
 to indicate that the client certifies that he or she isn't required to make any estimated tax payments for the current year.
Made all required federal tax deposits for the current quarter
Enter
X
 to indicate that the client certifies that he or she has made all required federal tax deposits for the current quarter.
Not required to make any federal tax deposits for the current quarter
Enter
X
 to indicate that the client certifies that he or she isn't required to make any federal tax deposits for the current quarter.
If authorized to act on behalf of estate or deceased individual, is testamentary letter provided?
  • Enter
    1
     if the filer has provided a letter of testamentary or other verification of persons authorized to act on behalf of the estate or deceased individual.
  • Enter
    2
     if the filer hasn't provided a letter of testamentary or other verification of persons authorized to act on behalf of the estate or deceased individual.
Payment Information
Enter information in this section to complete the payment terms of the offer.
Low income certification (Force)
UltraTax CS automatically computes whether the client qualifies for the Low Income Certification guidelines based on the amount calculated on Form 433-A (OIC), Box F.
If you enter
1
 in this field, the Low Income Certification guidelines are used instead of the amounts calculated on Form 433-A (OIC), Box F. If you enter
2
, the amounts calculated on Form 433-A (OIC), Box F, are used.
OIC amount (Force)
If this field contains data, that amount is used instead of the amount calculated on Form 433-A (OIC), Section 8.
Lump sum cash
Use this statement to enter information about up to 5 lump sum cash payments to be paid in no greater than 5 months.
  • Amount
    : Enter the amount of payment to be made.
  • Payable Within How Many Months After Acceptance
    : Enter the amount of months within the Offer in Compromise acceptance date that the payment will be made.
Initial periodic payment
Enter the first periodic payment to be submitted with the Offer in Compromise application. If the client qualifies for Low Income Certification, enter
0
 in this field. Don't include in this amount UltraTax CS fee or any additional amounts included with UltraTax CS that are designated for deposit. Additional amounts included with UltraTax CS that are designated for deposit can be entered on the
Designated deposit
 field.
Periodic payments
Enter the periodic payment amounts to be paid monthly toward the Offer in Compromise over the course of 6 to 24 months.
Day of month payment to be made
Enter the day of the month that the periodic payments will be made. Don't enter a day later than the 28th.
Months of periodic payments
Enter the total amount of months that periodic payments will be made.
Final periodic payment
Enter the amount of the final periodic payment.
Day of month final payment to be made
Enter the day of month the final periodic payment will be made.
Designated down payment tax year/quarter
Enter the tax year or quarter to which the down payment is being applied.
Designated deposit
Enter the amount of additional payment to be included with the Offer in Compromise application that's being designated to be held as a deposit. Amounts paid that are designated as deposits will be refunded if the offer is rejected, returned, or withdrawn, unless the client requests it to be applied to his or her tax debt.
note
Don't designate the amounts sent in with the Offer in Compromise application to cover the down payment and application fee as deposits. Doing so results in the offer being returned.
Source of funds
Use this statement box to describe where the client will obtain the funds to pay for the Offer in Compromise.

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