IRS Form 656-PPV – Offer in Compromise – Periodic Payment Voucher – If you’re dealing with tax debt and exploring options to settle it for less than what you owe, the IRS Offer in Compromise (OIC) program might be a viable solution. Within this program, certain payment plans require ongoing submissions during the review process. That’s where IRS Form 656-PPV comes into play. This comprehensive guide covers everything you need to know about the Offer in Compromise Periodic Payment Voucher, including its purpose, how to use it, and key tips for compliance. Whether you’re a taxpayer navigating IRS forms or a tax professional assisting clients, understanding Form 656-PPV can help streamline the OIC process.
What is IRS Form 656-PPV?
IRS Form 656-PPV, officially titled “Offer in Compromise – Periodic Payment Voucher,” is a document provided by the Internal Revenue Service (IRS) to facilitate periodic payments for taxpayers who have submitted an Offer in Compromise. This form is specifically for OIC applications where the settlement amount is to be paid over a period of 6 to 24 months, known as a Periodic Payment Offer.
The primary purpose of Form 656-PPV is to ensure that taxpayers continue making their proposed payments while the IRS investigates and evaluates the offer. Payments must be made until you receive an official decision letter from the IRS, which could indicate acceptance, rejection, return, or withdrawal of the offer. Without these ongoing payments, your OIC could be at risk of being returned or rejected.
This form was last revised in April 2020 (Rev. 4-2020) and remains the current version as of 2026. You can download the latest PDF directly from the IRS website for free.
Who Needs to Use Form 656-PPV?
Not every OIC requires Form 656-PPV. It’s specifically for those opting for a periodic payment plan in their Offer in Compromise submission via Form 656. If your offer involves a lump-sum payment (typically five payments or fewer), you won’t need this voucher.
You might receive Form 656-PPV in a letter from the IRS after submitting your OIC. It’s essential for:
- Individuals or businesses with tax debts seeking doubt as to collectibility, doubt as to liability, or effective tax administration offers.
- Taxpayers who qualify for the program but are not exempt under low-income certification (those certified low-income may not need to make payments during the review).
Before using this form, confirm your eligibility for an OIC using the IRS Offer in Compromise Pre-Qualifier Tool or by checking your Individual Online Account.
How to Fill Out Form 656-PPV?
Filling out IRS Form 656-PPV is straightforward, but accuracy is crucial to avoid processing delays. Here’s a step-by-step breakdown:
- Personal Information: Enter your full name (first name, middle initial, last name), address (including city, state, and ZIP code).
- Identification Numbers: Provide your Social Security Number (SSN) or Employer Identification Number (EIN).
- Offer in Compromise Number: Include the unique OIC number assigned to your case.
- Payment Amount: Specify the amount of your payment, rounded up to the nearest whole dollar.
Attach your check or money order made payable to the “United States Treasury.” Do not staple or attach the payment—simply enclose it with the voucher. Write your SSN or EIN on the payment itself, and never send cash.
You can designate the payment toward a specific tax liability (e.g., Form 1040 for a particular year) by noting it on the voucher. If not specified, the IRS will apply it in the government’s best interest.
Where to Mail Your Payment and Voucher?
The mailing address for Form 656-PPV depends on your state of residence:
- For residents of AZ, CA, CO, HI, ID, KY, MS, NM, NV, OK, OR, TN, TX, UT, WA: Mail to Memphis IRS Center COIC Unit AMC-Stop 880, P.O. Box 30834, Memphis, TN 38130-0834. Contact: 1-844-398-5025.
- For residents of AK, AL, AR, CT, DC, DE, FL, GA, IA, IL, IN, KS, LA, MA, MD, ME, MI, MN, MO, MT, NC, ND, NE, NH, NJ, NY, OH, PA, PR, RI, SC, SD, VA, VT, WI, WV, WY, or foreign addresses: Mail to Brookhaven IRS Center COIC Unit, P.O. Box 9011, Holtsville, NY 11742. Contact: 1-844-805-4980.
Always use the provided voucher to ensure your payment is correctly applied to your OIC.
Electronic Payment Options for Form 656-PPV
To avoid mailing delays, consider making payments electronically through the Electronic Federal Tax Payment System (EFTPS). When using EFTPS, select “Offer in Compromise – Subsequent Periodic Payment” as the payment type. This method is secure, convenient, and helps track your payments in real-time.
Important Tips and Considerations for Using Form 656-PPV
- Low-Income Exemption: If you qualified for low-income certification on Form 656, you don’t need to make periodic payments, but any voluntary payments will still apply to your tax debt.
- Multiple Offers: If submitting joint and separate offers (e.g., for married couples), each Form 656 requires its own payments and vouchers.
- Common Mistakes to Avoid: Double-check your OIC number and payment amount. Incomplete vouchers can lead to misapplied payments.
- Stay Compliant: Continue all required tax filings and payments outside of the OIC during the review process to keep your offer active.
- Seek Professional Help: Consulting a tax advisor or enrolled agent can help if you’re unsure about the OIC process or form completion.
For the most up-to-date information, always refer to official IRS resources.
Conclusion
IRS Form 656-PPV plays a critical role in maintaining your Offer in Compromise during the IRS review period. By understanding its requirements and following the guidelines, you can improve your chances of a successful OIC outcome. If you’re ready to get started, download Form 656-PPV from the IRS website and ensure all payments are submitted promptly. Remember, settling tax debt through an OIC isn’t guaranteed, but proper use of tools like this voucher demonstrates your commitment to resolution. For personalized advice, contact the IRS or a qualified tax professional.