Jul 28, 2008

Q & A: More About Offers In Compromise

QUESTION: Kudos on a well-written blog.
My question is: If I submit an OIC, can the revenue officer deem it Currently Not Collectible? If deemed CNC, will the collection statute clock start ticking again? Or does time stand still because it is considered still in the OIC department or an OIC matter?
If it is placed in CNC, would I have to submit an OIC again later? If so, when? My circumstances aren't about the change.
Thanks for the active blog and information!

ANSWER: Thanks for the question. The CNC and the OIC are different negotiations. Filing an OIC will take you out of collections (technically- if this is a "multiple offer" then the IRS may continue collections- i.e. levies, etc.). Revenue Officers do not consider OICs- they have to send it to a Centralized OIC Unit in Holtsville, NY or Memphis, TN who can send it out to a Field Office (Not your RO though) to make an independent determination (they do this if you have a business or have trust fund tax liabilities).

You will need to negotiate the CNC if the OIC is not successful- the RO will not put you into CNC until he/she has made an independent determination that they cannot collect on your monthly disposable income and/or asset liquidation. This is an independent decision of the OIC. If the OIC is not successful, it will not determine the status of your collectibility--the RO will make a determination by investigation into your finances.

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