The IRS yesterday issued various documents in connection with its new revamped Offer in Compromise Program:
Effective July 16, 2006, a new federal law will change the way the offer in compromise (OIC) program operates and its role in the IRS collection process. In general, this means that:
- Taxpayers submitting lump-sum offers must make a 20% nonrefundable, up-front payment to the IRS;
- Taxpayers submitting a periodic-payment OIC must make a nonrefundable, up-front payment, plus any other proposed payments that may be due, while the IRS is evaluating the offer; and
- An OIC application is deemed accepted if the IRS fails to act upon it within two years.
- IR-2006-106, New Law Revamps IRS Offer in Compromise Program
- Notice 2006-68, Downpayments for Offers in Compromise
- Fact Sheet 2006-22, Revamped Offer in Compromise Program Plays New Role in Collection Process
- Form 656, Offer in Compromise
- Form 9465, Installment Agreement Request
- Publication 594, Understanding the IRS Collection Process
- How Can I Save Money By Paying My Taxes?
