Showing 25-36 of 62 results
OIC 121: Rejecting a Pending Offer
“Rejecting” a Pending Offer. The IRS can “reject” a processable Offer in Compromise application for many reasons. The IRS defines “reject” as a non-acceptance recommendation of any OIC offer that includes appellate rights. IRM § 5.8.7.1.6(1) (12-20-2018). The rejection of an application closes the Offer in Compromise application review process. …
OIC 122: Accepting a Pending Offer
“Accepting” a Pending Offer by the IRS. The decision whether to “accept” an offer to compromise is within the IRS’ discretion and must be based upon consideration of all the facts and circumstances. 26 C.F.R. § 301.7122-1(c)(1); Johnson v. Commission of Internal Revenue, 136 T.C. 475, 485 (2011); Christopher Cross, Inc.…
OIC 123: Taxpayer’s Duties Post-Acceptance
Taxpayer’s Duties Post-Acceptance. A Taxpayer has cause to celebrate the IRS’ decision to accept his/her offer to compromise the back-taxes. But the taxpayer must stay vigilant and in full compliance with all terms of the Form 656 offer terms for the 5-year period beginning with the date the offer was…
OIC 124: Default After Acceptance
Default After Acceptance. A taxpayer must honor all terms set forth in the Form 656 agreement. Form 656, Section 7, https://www.irs.gov/pub/irs-pdf/f656b.pdf. In particular, a taxpayer must comply with all filing and payment obligations under the Tax Code for a period of 5 years after the offer is accepted. Form 656,…
OIC 125: Tax Refunds
Tax Refunds. The IRS keeps any tax refund emanating from overpayment of any tax or other liability due through the calendar year the IRS accepts the taxpayer’s offer. Form 656, Section 7(e), https://www.irs.gov/pub/irs-pdf/f656b.pdf. The IRS will keep any refund, including interest, for tax periods extending through the calendar year that the IRS…
OIC 126: Appellate Rights
Appellate Rights Relating to OICs. This course discusses appellate rights in the Offer in Compromise context. Appellate rights are better understood when segregated into three issues: (1) appellate rights relating to a pre-rejection “independent administrative review”; (2) appellate rights following a collection due process determination (i.e. offer made as part of…
OIC 127: Levy Affected by OIC
Levy Affected by OIC. Taxpayers are not protected from the IRS collection apparatus while contemplating or completing an Offer in Compromise application. Similarly, taxpayers are not automatically protected from levy by submitting an Offer in Compromise application. “Submission of an Offer in Compromise does not automatically stay collection of an…
OIC 128: OIC Affects an Installment Agreement
Installment Agreements Affected by OIC. Is a taxpayer required to continue making installment agreement payments if the taxpayer plans on filing an Offer in Compromise? Yes, is the simple answer because the Offer in Compromise application has not yet been submitted and has not yet been approved for processing by the IRS. …
OIC 129: Trust Fund & Trust Fund Recovery Penalty
Trust Fund & Trust Fund Recovery Penalty. Federal law requires employers to withhold certain taxes from their employees’ pay. Each time the employer pays wages, the employer must withhold – or deduct from the employees’ pay – certain amounts for federal income tax, Social Security tax, and Medicare tax. The…
OIC 130: Criminal Restitution Issues
Criminal Restitution Issues. Taxpayers may submit an Offer in Compromise application to resolve criminal penalties. The Secretary of the Treasury may compromise any criminal liability arising under the internal revenue laws prior to the reference to the Department of Justice for prosecution or defense. 26 U.S.C. § 7122(a). An agreement…
OIC 131: Miscellaneous OIC Issues – Part 1
Miscellaneous Offer in Compromise Issues – Part 1. Attorneys are authorized to represent taxpayers before the IRS on collection matters, including an Offer in Compromise. IRM § 5.8.4.25(6) (05-10-2013). Taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. For more information, go…
OIC 132: Miscellaneous OIC Issues – Part 2
Miscellaneous Offer in Compromise Issues – Part 2. Attorneys are authorized to represent taxpayers before the IRS on collection matters, including an Offer in Compromise. IRM § 5.8.4.25(6) (05-10-2013). Taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. For more information, go…