IRS SB/SE Reissuance of Procedures for an Offer to Compromise an Accepted Offer, SBSE-05-0110-003, (Jan. 27, 2010)
2010ARD 018-4
Internal Revenue Service: SB/SE memorandum: Interim guidance: Offer to compromise an accepted offer
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON. D.C. 20224
SMALL BUSINESS/SELF.EMPLOYED DIVISION
January 15, 2010
Control Number: SB/SE-05-0110-003
Expiration Date: January 15, 2011
Impacted: IRM 5.8.9
MEMORANDUM FOR DIRECTOR, CAMPUS COMPLIANCE OPERATIONS (BROOKHAVEN) and (MEMPHIS) DIRECTORS, COLLECTION AREA OPERATIONS
FROM: Frederick W. Schindler /s/ Frederick Schindler Director, Collection Policy
SUBJECT: Reissuance of Procedures for an Offer to Compromise an Accepted Offer
The purpose of this memorandum is to reissue interim guidance dated February 2, 2009 with control number SB/SE-05-0209-007 titled, Interim Guidance for an Offer to Compromise an Accepted Offer. This interim guidance memorandum provides procedures for working an offer to compromise an accepted offer. Please ensure this information is distributed to all affected employees.
When the monitoring campuses receive a proposal to change the payment terms of an accepted offer or receive a formal proposal to compromise an accepted offer, the monitoring campus is required to send an Other Investigation (OI) to the office of jurisdiction that initially accepted the offer for consideration (OIC Field function, Centralized OIC (COIC) or Appeals).
Although taxpayers are not required to use a specific offer form, i.e. Form 656, to submit a proposal they are required to submit the proposal in writing. The proposal will be forwarded with the OI to the office that will conduct the investigation. Taxpayers are not required to include a 20 percent payment or periodic payments with the proposal.
Employees will secure and review the taxpayer's updated financial information and supporting documentation and negotiate the terms of the proposal based on the taxpayer's financial situation. The terms available are the same as the terms offered on Form 656 (rev 02/2007 or later), i.e. lump sum cash or periodic payment, regardless of the original offer IRS received date. Employees must adhere to IRM 5.8.9.4.3 when considering a proposal for an offer on an offer and IRM 5.8.9.4.4 when closing the investigation. The investigating office will provide Monitoring Offer in Compromise Unit (MOIC) with the revised terms of the accepted offer. The offer will not be open on the Automated Offer in Compromise System (AOIC), and therefore no documentation will be necessary on AOIC. If the taxpayer's proposal is not acceptable, the investigating office will advise MOIC to proceed with the default of the original offer.
If you have any questions, please feel free to contact me, or a member of your staff may contact Diana Estey. Territory personnel should direct any questions, through their management staff to the appropriate Area contact.
cc: National Taxpayer Advocate
Chief Appeals
www.irs.gov