OIC Payments

[Catherine]

Does anyone have ANY idea of how to set this up?  

One of my clients had an OIC accepted.  The client wants to set up automatic monthly payments to the IRS for the OIC balance due, in accordance with the monthly payment agreed upon.  The OIC office told us we could set that up online.  HOWEVER - bless me if I can find ANY information on how to do that.  I called the OIC office back, and all they could tell me was "yes,  you can do that, no we don't know how."  Direct Pay (which does not have a way to set up repeat payments) does not even have and offer in compromise as a payment type.  An installment agreement includes a fee to set up - which seems ridiculous for someone who has just had an offer accepted.  Searching the IRS site gives me nothing usable.

Any guidance here?  Thanks!

[jklcpa]

EFTPS allows various OIC payments including one for subsequent periodic payments. It isn't exactly automated, but depending on how many payments were agreed to, that would be an option where the TP could schedule the payments.

[easytax]

There is a fee regardless, unless you pay via check each time and even then there are pitfalls (never sure when credited, if it made it on time, etc..

Electronically at least leaves proof and timeliness.

Pub 5123

ELECTRONIC FEDERAL TAX PAYMENT SYSTEM PAYMENT INSTRUCTION BOOKLET FOR BUSINESS & INDIVIDUAL TAXPAYERS https://www.irs.gov/pub/irs-pdf/p4990.pdf 

 

[Catherine]

Thanks; I'll see what I can pull together to tell her.

[Max W]

Catherine, please let us know if you find anything.  I looked through pub 4990 and found nothing for OIC.  I would certainly be interested in having that information.

[Catherine]

Will do, Max!

[Jack from Ohio]

This can be set up in EFTPS.  The automatic recurring payments can be set up there as well.  It is the responsibility of the taxpayer to make sure the payments are made.