Rev. Proc. 57-41

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to announce the revision and consolidation of Forms 656 and 656-C, Offer in Compromise and Offer in Compromise (Deferred Installment Payments), and to prescribe the consolidated form for Service-Wide use in submitting all offers in compromise.

SEC. 2. BACKGROUND.

Form 656, printed on white paper, is currently being used by taxpayers to submit all cash offers in compromise. Form 656-C, printed on blue paper, is the form on which deferred payment offers in compromise are required to be submitted. From a combined study by National Office, Regional and District personnel, it was concluded that the use of one consolidated form, to replace Forms 656 and 656-C currently in use, would effect more expeditious processing and consideration of offers in compromise.

SEC. 3. FORMAT.

Form 656 (Rev. 7-57) will be printed on salmon colored paper. Changes in format on the face and reverse of the form are self-explanatory. The major change reflected in this consolidated form was accomplished by merging the provisions shown on the cash and deferred payment forms presently in use. All paragraphs on the face of the revised Form 656 have been numbered for easy reference.

SEC. 4. USE OF FORM.

The new Form 656 will be used by all taxpayers submitting offers in compromise regardless of whether the total amount offered is paid in full at the time the offer is filed or whether the amount, or any portion thereof, is payable on the deferred payment basis.

SEC. 5. SUPPLY OF FORMS.

The present cash and deferred payment offer forms will be continued in use until the stocks are exhausted, at which time the revised Form 656 will be placed in use.