Taxes and Offer In Compromise

Once an Offer In Compromise is accepted by the IRS, taxpayers must remain in compliance by filing and paying all required taxes for a period of five years, or until the offered amount is paid in full, whichever is longer. Failure to comply will result in the default of the Offer in Compromise and the reinstatement of the Tax Debt.

The IRS will keep any refund, including interest due to the taxpayer because of overpayment of any tax or other liability, for tax periods extending through the calendar year that the IRS accepts the offer. The taxpayer may not designate an overpayment ordinarily subject to refund, to which the IRS is entitled, to be applied to estimated tax payments for the following year. This condition does not apply if the offer is based on Doubt as to the Liability