Are partial payments required with Submission of an Offer In Compromise?
Effective, July 17, 2006, the IRS has mandated a requirement that any lump-sum (90 day terms) offer must be accompanied by the payment of a non-refundable 20% deposit of the offer amount. For this purpose, a lump-sum offer in compromise is any offer of payment made in five or fewer installments. Any periodic payment offer in compromise (24 month short term deferred) must be accomplished by the payment of the amount of the first installment. The IRS will treat any failure to make an installment due under a periodic payment offer in compromise while the offer is being evaluated by IRS as a withdrawal offer. Both the 20% deposit on lump-sum offers and payments on the periodic installment offers are in addition to the $150.00 user application fee.
Related Questions
- Do I have to continue to make payments under an existing payment plan with the Attorney General while an offer in compromise is pending?
- What happens to the Offer In Compromise and the application fee and 20% deposit or periodic payments, after I send it to the IRS?
- Are partial payments required with Submission of an Offer In Compromise?
