Offer in Compromise Questions

Offer Determinations

 

408  What happens if I default my OIC?     (REVISED 8/2004)

The IRS may take the following actions:

• Immediately file suit to collect the entire unpaid balance of the offer
• Immediately file suit to collect an amount equal to the original amount of the tax liability as liquidating damages, minus any payment already received under the terms of this offer
• Disregard the amount of the offer and apply all amounts already paid under the offer against the original amount of the tax liability
• File suit or levy to collect the original amount of the tax liability, without further notice of any kind 

NOTE: The IRS will not default an agreement when taxpayers have filed a joint OIC with your spouse or ex-spouse, as long as you have kept, or are keeping, all the terms of the agreement, even if your spouse or ex-spouse violates the future compliance provision.

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