There are certain circumstances where the Internal Revenue Service will withhold collection activities while they consider your offer. The circumstances where the IRS will not act to collect the tax liability include:
The circumstance where the IRS will withhold collection are not applicable when the IRS finds any indication that the taxpayer submitted an Offer in Compromise to delay collection or cause a delay which will jeopardize their ability to collect the tax.
You should also be aware that a Notice of Federal Tax Lien may be filed at any time while your offer is being considered.
Also, if you currently have an installment agreement when you submit an offer, you must continue making the agreed upon monthly payments while the IRS considers your offer.
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