Is a tax lien released when an OFFER IN COMPROMISE is accepted?
• The IRS releases a Notice of Federal Tax Lien when all of the Offer In Compromise payment terms are satisfied. • For an immediate release of a lien, a taxpayer can submit payment using a certified check and include a request letter. What happens if I default my Offer In Compromise? The IRS may take the following actions: • Immediately file suit to collect an amount equal to the original amount of the tax liability as liquidating damages, minus any payment already received under the terms of the Offer In Compromise • Immediately file suit to collect an amount equal to the original amount of the tax liability as liquidating damages, minus any payment already received under the terms of the Offer In Compromise • Disregard the amount of the Offer In Compromise and apply all amounts already paid under the Offer In Compromise against the original amount of the tax liability • File suit or levy to collect the original amount of the tax liability, without further notice The IRS will not defa
The IRS will release all previously filed liens, but only when all of the terms of the offer in compromise are satisfied. For an immediate release of a lien, a taxpayer can submit payment using certified funds, or seek a release of the lien, a discharge of specific property from the effect of the lien by filing a proper application in accordance with published IRS procedures.
Related Questions
- An Offer in Compromise ("OIC") is a way for taxpayers to compromise their outstanding tax obligations without having to pay the full liability owed. Do I qualify for an Offer in Compromise?
- Is a tax lien released when an OFFER IN COMPROMISE is accepted?
- Can an Offer in Compromise Stop a Federal Tax Lien or Levy?
