- 13 - IRM sec. 5.8.7.6.1 or policy statement P-5-89 in the rejection narrative. Rather, respondent referenced IRM sec. 5.8.7.6(5) as the reason for rejecting petitioner’s offer. Offers-in-compromise contain default provisions. IRM sec. 5.19.7.3.20.5(1) (Feb. 1, 2004) provides that “Taxpayers must agree to the future compliance provisions when offers are accepted. The taxpayer must timely file all tax returns and pay all taxes due during the compliance period. The compliance period is five years from the acceptance date or until the offer amount is paid in full, whichever is longer.” It further provides “Failure to adhere to the compliance terms could result in the default of the OIC and reinstatement of compromised liabilities.” IRM sec. 5.19.7.3.20.5(4) (Feb. 1, 2004). Form 656 Item 8(n) elaborates by providing that if the taxpayer fail[s] to meet any of the terms and conditions of the offer and the offer defaults, then the IRS may: -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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011