Nonrefundable 20% payment required when submitting Offer In Compromise
The new Tax Law effective July 17, 2006 requires taxpayers to pay a NONREFUNDABLE 20% of the amount they offer in an Offer In Compromise with the offer. If they also offer to make monthly payments then they must begin the monthly payments. The 20% with the OIC and the monthly payments are nonrefundable. THis means most taxpayers cannot risk submitting an Offer In Compromise.