Most people have no idea the offer in compromise has terms attached with it because they fail to read the back about the terms of acceptance.

I am a former IRS agent revenue officer as well as a teaching instructor when I worked at Internal Revenue Service.

This has hurt many taxpayers if these terms are not adhered to for the offer in compromise, if these terms are broken for  offer in compromise, your case goes into default and back into the field full for collection.


As guess, I imagine 20% of the accepted offers in compromise come back to the field because people are not aware of these terms that you find on the back page of the offer.

Many practitioners are unaware or failed to notify taxpayers regarding the terms that IRS uses.

 It is very important you understand these terms so you’re accepted offer in compromise stays just that, accepted.

If the offer in compromise comes back to the field is like it was never accepted and the amount that you owe is higher because IRS has assessed more penalties and interest on the deficiency.

Make sure you’re accepted offer in compromise does not return back to haunt you.


The Terms Offer in Compromise



If the IRS accepts the taxpayer’s offer, the taxpayer will have agreed to fully comply with the tax laws.

Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.

If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.

For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.

When the IRS terminates an OIC, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.

 If this has happened to you, give us a call today I will find out if we can get your offer in compromise reinstated.

Accepted Offers in Compromise Can Default, Former IRS Agent