IRS: No Return, No OIC
The IRS will now return newly filed Offer in Compromise applications if the taxpayer has not filed all required returns.
Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
To confirm your client is eligible and get an estimated offer amount, use the OIC Pre-Qualifier Tool.
The IRS received some 68,000 OICs in 2014, the latest year for which information is available.