Skip to main content

OIC Guidelines

When an Eligible Offer in Compromise Becomes Pending

  1. An offer in compromise becomes pending when the Form 5181, along with required documentation, and the required initial payment of $100.00 or 20% of the offer, whichever is greater, is received by Treasury.
  2. Treasury will not levy against property or assets to collect on the tax debt specified in the offer in compromise while the offer in compromise is pending review and decision by Treasury, except where Treasury determines that the offer in compromise was submitted solely for purposes of delaying collection of the tax debt or where Treasury determines the need to issue a jeopardy assessment.
  3. Treasury will notify a taxpayer in writing by sending an Acknowledgment of Offer in Compromise when an offer in compromise submission is received.
  4. If Treasury determines that the offer in compromise submission is incomplete or does not include the required documentation, the initial offer payment, or information sufficient for Treasury to evaluate the offer in compromise, or is otherwise ineligible for review, Treasury will notify the taxpayer and any designated third-party representative, in writing, within a reasonable period of time: 1) that the offer in compromise is ineligible for review and the reason why; or 2) what additional information must be provided in order for the submission of the offer in compromise to be considered complete and eligible for Treasury to review.
Previous  |  Next