The Form CT-656, initiated by the Department of Revenue Services Collections & A/R Management Division, represents a vital pathway for taxpayers seeking an Offer of Compromise in Connecticut. This form is instrumental for individuals, partnerships, and corporations striving to navigate their tax liabilities under challenging circumstances. The process requires that each entity provides comprehensive details, from corporate information to personal financial records, ensuring a thorough evaluation by the revenue services. Applicants must furnish recent federal income tax returns, profit and loss statements, information on loans and salaries, and even a current consumer credit report, painting a detailed picture of their financial status. The form intricately outlines the conditions under which an offer can be accepted or rejected, touching on aspects such as previous bankruptcy filings, completion of tax returns, and avoidance of fraudulent misrepresentation. Moreover, it emphasizes the irreversible nature of acceptance conditions, where fulfillment leads to final settlement, while any deviation can revert the liability to its original state or worse. The CT-656 form embodies a crucial financial lifeline, offering a structured process for those in dire need of compromise on their tax obligations, albeit under strict scrutiny and predefined conditions.
| Question | Answer |
|---|---|
| Form Name | Ct 656 Form |
| Form Length | 3 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 45 sec |
| Other names | offer of compromise connecticut, tax conditionally compromise, you ct 656, offer drs compromise |
Department of Revenue Services
Collections & A/R Management Division
450 Columbus Blvd, Ste 1
Hartford CT
(Rev. 03/18)
Form
Offer of Compromise
Requirements
1.For a partnership: Each partner must complete an application.
For a corporation: Complete one application providing corporate information. Corporate oficers may be required to provide additional personal inancial records.
2.Complete the entire application; do not leave any questions
unanswered. Write the words No or None where applicable.
Return the application with all required attachments to the
Department of Revenue Services (DRS) at the address above.
3.If you cannot include all the requested information in the spaces provided on the application, attach additional sheets as appropriate.
4.Each applicant must provide copies of the following:
•Last two federal income tax forms and returns for the corporation and corporate oficers, proprietor, or partnership and partners iled with the Internal Revenue
Service. Include all supporting schedules, forms
•Current consumer credit report;
•All information related to salary, draws, and loans to the proprietor, partners, or corporate oficers; and
•Proit and loss statements for the two most recent years.
5.If you iled for bankruptcy within the past ive years, provide a copy of the discharge notice.
Terms and Conditions
1.Upon receipt of your offer of compromise, DRS will either reject or conditionally accept your offer.
2.If DRS conditionally accepts your offer, inal acceptance of your offer by DRS is conditioned on your full and complete
satisfaction of the terms and conditions in Paragraph 8.
If you fail to satisfy fully and completely these terms and conditions, your tax liability reverts to its original amount (prior to the conditional acceptance of your offer of compromise), and DRS may, without further notice, immediately take whatever steps necessary to collect the unpaid portion of your original tax liability.
3.DRS will reject your offer of compromise if at the time your offer is made:
•You have not filed all required Connecticut tax returns;
•You are being criminally prosecuted for a Connecticut tax liability; or
•You have begun a voluntary bankruptcy case by iling a petition with the U.S. Bankruptcy Court under Title 11 of the U.S. Code, and another person has iled an involuntary bankruptcy case against you.
4.By submitting this offer, you are authorizing DRS, at its discretion, to obtain copies of your consumer credit reports
for the purpose of evaluating this application before, during, and subsequent to any agreement.
5.While you are not required to submit a payment with your offer of compromise, any payment will be deposited by DRS and applied to your tax liability in accordance with Conn. Gen. Stat.
6.After your offer is conditionally accepted, but before you have paid the full amount of your offer, including any accrued interest, you will return to DRS, uncashed, any refund check issued to you and relating to a tax overpayment reported on any Connecticut tax return. The amount of the refund check will be applied to the amount of your offer.
7.By making your offer of compromise, you irrevocably and conclusively waive any and all rights and remedies you have to contest, in court or otherwise, your liability for the amount of your offer if your offer is conditionally accepted by DRS. If DRS rejects your offer or you withdraw your offer before it is rejected or conditionally accepted by DRS, you retain any rights and remedies, to the extent they have not lapsed or been exhausted, to contest your liability for the amount of your offer.
8.If DRS conditionally accepts your offer, then, upon your full
and complete satisfaction of the terms in this paragraph, acceptance of your offer by DRS is inal.
a.You pay the full amount of your offer and any accrued interest;
b.After your offer is conditionally accepted but before you have paid the full amount of your offer, including any accrued interest, you timely ile all required Connecticut tax returns that become due;
c.After your offer is conditionally accepted but before you have paid the full amount of your offer, including any accrued interest, you do not begin a voluntary bankruptcy case by filing a petition with the U.S. Bankruptcy Court under Title 11 of the U.S. Code, and another person does not ile an involuntary bankruptcy case against you; and
d.You have not misrepresented, with fraudulent intent, your ability to pay your original tax liability. If DRS determines you fraudulently misrepresented your ability to pay your original tax liability, your tax liability
will revert to its original amount prior to the conditional acceptance of your offer.
Department of Revenue Services
Collections & A/R Management Division
450 Columbus Blvd, Ste 1
Hartford CT
(Rev. 03/18)
Form
Offer of Compromise
Name, DBA, and address of taxpayer(s) |
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Date of birth |
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Number of dependents |
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claimed on federal |
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income tax return |
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Connecticut Tax Registration Number |
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Social Security Number or Federal |
For DRS Use Only |
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Employer Identiication Number |
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Amount paid |
Date received |
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To: Commissioner of Revenue Services |
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$ |
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I understand this offer is based on doubt as to collectibility and will be accepted only after that fact has been established. A completed inancial statement must be included with this offer.
I submit this offer to compromise the tax liabilities plus interest, penalties, additions to tax, and additional amounts required by law (tax liability) for the tax type and period(s) listed below.
Tax type |
Period(s) |
Is this bill under appeal? |
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I offer to pay $ _________________________ by _____________________ .
DRS must receive payment within 30 days from the date the offer is accepted. Interest continues to accrue on any
unpaid balance until the date it is paid in full.
Read All Requirements, Terms, and Conditions
Declaration: I declare under penalty of law that I have examined this application and to the best of my knowledge and belief, it is true, complete, and correct. I understand the penalty for willfully delivering a false application to DRS is a ine of not more than $5,000, or imprisonment for not more than ive years, or both.
Print name |
Signature |
Date |
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Spouse’s name (if joint liability) |
Spouse’s signature (if joint liability) |
Date |
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Signature of authorized DRS oficial |
Title |
Date |
Disposition: |
Conditional Acceptance |
Rejection |
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A. Credit: All loans, credit cards, installment accounts, other debts, or past due federal, state, or municipal taxes
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Account |
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Current |
Minimum Monthly |
Name and Address of Creditors |
Number |
Credit Limit |
Balance |
Amount |
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B. Bank Accounts: Savings, checking, certiicates of deposit, IRA, Keough, etc.
Name and Address of Institution |
Account Number |
Account Type |
Balance |
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C. Real Estate
Location |
Type of |
% of |
Estimated |
Balance of |
Mortgage |
(Number, street, town, state, ZIP code) |
Property |
Ownership |
Market Value |
Mortgage |
Holder |
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D. Automobiles, Furniture and Fixtures, Machinery and Equipment, Other Personal Property
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Estimated |
% of |
Outstanding |
Type of Property |
Location |
Market Value |
Ownership |
Liens |
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E. Government and Marketable Securities
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Number of Shares/ |
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Market |
Source of |
Description |
Face Value of Bonds |
In Name of |
Value |
Value |
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F. Receivables: Trade receivables, loans to oficers, etc.
Name and Address of Creditors
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Current |
Account Number |
Credit Limit |
Balance |
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Minimum Monthly
Amount
Declaration: I declare under penalty of law that I have examined this application and to the best of my knowledge and belief, it is true, complete, and correct. I understand the penalty for willfully delivering a false application to DRS is a ine of not more than $5,000 or imprisonment for not more than ive years, or both.
Applicant’s signature |
Title |
Telephone number |
Date |