Initial Offer Actions and Contact Procedures in Offer in Compromise Cases Worked in the Centralized Offer in Compromise Sites

 February 7, 2012 

       Control Number: SBSE-05-0212-020 
Expiration: February 7, 2013 
Impacted: IRM 5.8.4 
MEMORANDUM FOR DIRECTORS, CAMPUS COMPLIANCE OPERATIONS 
(Brookhaven and Memphis) 
FROM:  Scott D. Reisher /s/ Scott D. Reisher 
Director, Collection Policy 
SUBJECT:    Initial Offer Actions and Contact Procedures in Offer in Compromise 
    Cases Worked in the Centralized Offer in Compromise Sites 
The memorandum rescinds guidance in Interim Guidance Memorandum SBSE-05-0112-011, 
Initial Offer Actions and Contact Procedures in Offer in Compromise Cases Worked in the 
Centralized Offer in Compromise Sites, dated January 24, 2012. The revised and reissued 
guidance in this memorandum supersedes guidance under SBSE-05-0112-011.  Please 
disseminate this information to all affected personnel within your organization.   
The purpose of this memorandum is to provide guidance to offer examiners (OE) relative to 
the initial review of offer cases during an offer in compromise (OIC) investigation.  The 
procedures will be incorporated in the next revision of Internal Revenue Manual (IRM) 5.8.4, 
Investigation, and are effective for one year from the date of this memorandum.   
Upon issuance of this memorandum, a deviation is being granted to allow for initial screening 
of offer cases to determine the taxpayer's current compliance with return filing, current year 
estimated tax payments, and required payments. It will be up to the discretion of the 
Operation Manager of the COIC site to determine whether the screening for compliance will 
be completed first or at the same time as completing initial analysis.  If initial analysis and 
compliance are completed in one action, it must be completed within the required 30 days.  
If compliance is completed first, the OEs should review offers for current compliance with 
estimated tax payments, filing requirements and required TIPRA payments prior to initial 
financial analysis. If the internal verification indicates the taxpayer is not current, contact the 
taxpayer/representative by telephone to discuss and set a deadline for any tax returns or 
any payments that must be submitted prior to proceeding with the offer investigation. If the 
taxpayer fails to comply, return the offer without further contact.  
The established timeframe of 15 days is amended to 30 days to complete initial analysis and 
is extended to 45 days when compliance issues must be addressed upfront. If appropriate, 
additional time may be allowed for the taxpayer to become compliant, but the initial analysis 
must still be completed within the 45-day timeframe. If there are no compliance issues to 
resolve, the timeframe for initial analysis is 30 days.  Offers will be worked as expeditiously 
as possible with no unwarranted delays. 
All taxpayer/representative contacts for compliance issues and additional information must be 
made by telephone. Two attempts should be made within a 48 hour period. If contact is 
unsuccessful, an additional information letter will be sent with a deadline of 15 days (plus 15 
days mailing time) to submit the return/payments.  
NOTE: The OE is not limited to discussing compliance with the taxpayer/power of attorney.  
The OE may also address any obvious issues relative to the offer investigation. 
If you have any questions, please contact me, or a member of your staff may contact Diane 
Morris, OIC Senior Program Analyst or Ilene Nodiff-Robinson, Senior Tax Analyst. COIC 
personnel should elevate their questions through the appropriate management chain.      
cc:  www.irs.gov
        Director, Campus Compliance Services
 Chief, Appeals 
Chief Counsel 
        National Taxpayer Advocate
Posted by PitBullTax Administrator at 02/27/2012 05:47:22 PM
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