Form 656-L: Challenge the Tax Itself
Most OICs argue you can't pay. Form 656-L argues the IRS has the wrong number — that the tax assessment itself is legally or factually incorrect. You're not asking for mercy; you're telling the IRS: "You got this wrong, and here's why." If you win, the tax is reduced to the correct amount — not based on what you can afford.
Get Your Free Tax Relief Review
A specialist will review your case and outline your options — completely free.
Get Free DATL Help
Get Your Free Tax Relief Review
A specialist will review your case and outline your options — completely free.
Form 656-L (DATL) vs. Form 656 (DATC)
| Feature | Form 656 (DATC) | Form 656-L (DATL) |
|---|---|---|
| What You Argue | I cannot pay the full amount (collectibility) | The IRS assessment of the tax is wrong (liability) |
| Filing Fee | $205 (waived for low-income) | No filing fee — DATL OICs have no application fee |
| Down Payment | 20% of offer (lump sum) or first monthly payment | No down payment required — no payment with application |
| Financial Disclosure | Form 433-A (OIC) with full financials required | No financial disclosure required — the OIC unit evaluates only the legal/factual basis |
| Success Rate | ~33-40% of OICs accepted | Higher acceptance when the legal argument is strong — but fewer cases qualify |
| Common Grounds | Limited income/assets, economic hardship | IRS miscalculated tax, wrong filing status, missed deductions, statute issues, identity theft |
The IRS Made a Mistake — Prove It
We evaluate whether you have a viable Doubt as to Liability case and file Form 656-L with the legal and factual argument the IRS OIC unit needs to approve your offer. Free DATL evaluation.
Official IRS Source
View the official IRS Form 656-L PDFNew Beginning Tax Solutions is a private tax resolution company and is not affiliated with the IRS, the U.S. Department of the Treasury, or any government agency. This page is for general information only and does not constitute tax, legal, or financial advice. Tax rules change frequently — verify current requirements against official IRS sources before relying on anything you read here. Results vary based on individual circumstances.