What Happens While an Offer in Compromise Is Being Considered by the IRS?

You know what’s happening in your life now. You know that you are anxious and uncertain. You know that you and your Tulsa tax lawyer have done everything that you could to submit a strong offer in compromise to the IRS, but you just don’t know what the IRS is going to do about it. Will the agency accept your offer and allow you a reasonable way out of your tax problems, or will the IRS reject your offer and leave you back at square one?

What Could Happen During the Offer in Compromise Review Period

Once your offer in compromise has been submitted to the IRS, there are things that you and the IRS are required to do or could do before the offer in compromise is accepted. Those things include:

  • Having your payment and fees automatically applied to your tax liability
  • Extending the legal assessment and collection period
  • Paying all required payments associated with your pending offer
  • Suspending all payments on existing installment agreements
  • Suspending other collection activities
  • Filing a Notice of Federal Tax Lien

It is also important to know that if the IRS fails to make a determination on your offer within two years of receiving it, it must be automatically accepted.

Submit Your Offer in Compromise With the Help of a Tulsa Tax Lawyer

It is important to get legal advice before submitting an offer in compromise because once your offer in compromise is accepted, you are bound by the terms of your agreement. Thus, you want to make sure that an offer in compromise is the right option for you and that your proposed terms of an offer in compromise are well crafted.

For help drafting an offer in compromise or otherwise settling your outstanding tax problems, please contact an experienced Oklahoma tax attorney today at 800-721-7054, and please read a FREE copy of our book, The Ultimate Survival Guide for IRS Problems.