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BulldogTom

OIC when on an installment agreement

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Client has an installment agreement in place with the IRS.   Is going to file an offer.    Do they need to keep making payments on the installment agreement while the offer is being considered?   I know that collection activity stops during the offer consideration period.   Does the installment agreement stop as well, and then pick right back up if the offer is declined?

Thanks in advance.

Tom
Modesto, CA

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The IRS OIC office will send out an acknowledgement of receipt.  That is when collection activity stops and starts extending the SOL (CSED).  It  usually takes about two weeks after the offer is mailed before the letter arrives.

 

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Max,

Thanks for your response.   So what happens if the offer is rejected?   The Installment agreement has a time 2 year review period.  Is that date pushed out for the period of time that the offer was under consideration?  

Tom
Modesto, CA

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Does the installment agreement stop as well, and then pick right back up if the offer is declined?

 

Answer #5 from the first section of this IRS page:  https://www.irs.gov/businesses/small-businesses-self-employed/offer-in-compromise-faqs

 

Quote

Do I need to keep paying my Installment agreement while my offer is being processed?
No.  If you have an installment agreement in place, you do not have to make payments while your offer is being processed.  If your offer is not accepted and you have not incurred any additional tax debt, your installment agreement with the IRS will be reinstated with no additional fee.  

 

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I am amazed at the stuff Judy finds on the IRS website.   I looked there and found nada relating to my question.   I am in awe of her skill.

Tom
Modesto, CA

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Seriously, I hate searching on the IRS site and can't find 💩 directly because it brings up about 40 pages of unsorted stuff.  I have better luck with Google, and this time it was  "OIC and installment plan" and looked for the best link. It just happened to be the IRS site this time. It looked like a pretty good page of info too. Hope it helps.. 

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