Which IRS Personnel Handle Offers in Compromise?
IRS Collections
Has the responsibility for processing the following OICs:
-
All offers based on doubt as to collectability, including proposed liabilities still subject to settlement in Audit or Appeals.
-
All offers based on effective tax administration.
-
All offers under doubt as to liability for either trust funds recovery penalty (employment taxes) or personal liability for excise tax assessment.
Examination (Audit)
Has responsibility for processing these functions related to OICs:
-
Processing and investigation of offers based on doubt as to liability (except those cited above under IRS Collections);
-
Backup to Collections for recommendations on offers based on effective tax administration with public policy/equity issues.
Appeals
Handles OICs as necessary from both Collection and Audit cases.
Expedited Processing (IRM 5.8.4.27 (07-18-2017))
Taxpayers may ask that their OIC be expedited due to an emergency situation. Such situations might be:
a. A taxpayer’s time-sensitive contract that requires resolution of a tax liability as a condition of agreement;
b. Availability of funding for the offer is time-sensitive; or
c. A taxpayer’s terminal illness affecting ability to complete payment terms.
Offers requesting expedited processing are referred to IRS management personnel for decisions on the requests. The Form 656 should be clearly labeled “Emergency Processing Requested”. Target for completed processing of these requests is 90 days from receipt.