Offer in Compromise Questions

Processing Your OIC

 

304  What happens if I miscalculate my OIC or do not offer an amount equal to my reasonable collection potential?

This will result in processing delays and could be grounds for the IRS ultimate decision to reject an OIC. The IRS is observing a large upsurge of receipts in which the offered amount is clearly much lower than the reasonable collection potential illustrated on the taxpayer's financial statement. Furthermore, in a large number of these cases, the financial statement also shows that the taxpayer has a clear ability to satisfy the liability in full, or via an installment agreement during the course of the collection statute, and the taxpayer cites no special circumstances.

The IRS reviews OICs for indications of fraudulent intent. Submitting an OIC with false information, or making a false statement to an IRS employee, is considered an indicator of fraud and may be subject to civil or criminal penalties.

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