How will TIPRA, Section 509 impact the OIC program?
A3. TIPRA, Section 509, amends IRC 7122 by creating a new subsection (c) entitled, Rules for Submission of Offers-in-Compromise. The new subsection (c) requires that offers submitted on, or after July 16, 2006, (and not subject to the waiver with respect to low-income taxpayers or offers filed under doubt as to liability only) must be accompanied by partial payments of the proposed offer amount. The form of these partial payments depends on the taxpayers proposed offer and its terms. The law also establishes a time period after which an offer would be deemed accepted by the IRS.
