What happens if the IRS accepts an OFFER IN COMPROMISE?
If an offer in compromise is accepted, the following conditions apply: The taxpayer must pay the offer in compromise amount as quickly as possible and in accordance with the terms of the accepted agreement. The IRS will keep any tax refund, including interest due, as the result of an overpayment of any tax or other liability for all tax periods extending through the year the IRS accepts the offer in compromise. A taxpayer may not designate a refund to be applied as an estimated tax payment for the following year. (This condition does not apply if the offer is based on doubt as to liability only.) The taxpayer waives the right to contest, in court or otherwise, the amount of the tax liabilities compromised. If a Notice of Federal Tax Lien has been filed against a taxpayer, the IRS will release it, but only when the payment terms of the offer in compromise are satisfied. The taxpayer must remain in full compliance with all filing and payment requirements for all tax returns due for five
If an OFFER IN COMPROMISE is accepted, the following will apply: • The taxpayer must pay the OFFER IN COMPROMISE amount as quickly as possible in accordance with the acceptance agreement. • The IRS will keep any tax refund, including interest due, as the result of an overpayment of any tax or other liability for the tax period extending through the calendar year the IRS accepts the OFFER IN COMPROMISE. A taxpayer may not designate a refund and/or overpayment to be applied to estimated tax payments for the following year. This condition does not apply if the OFFER IN COMPROMISE is based on Doubt as to Liability only. • The taxpayer will waive their right to contest in court or otherwise, the amount of the tax liability. • If a Notice of Federal Tax Lien has been filed against a taxpayer, the IRS will release it when the payment terms of the OFFER IN COMPROMISE are satisfied. The taxpayer must remain in compliance with filing and payment of all tax returns for a period of five years from
