We represent clients from all U.S. and International locations regarding Federal Tax and California Issues.
Recent case law held that the IRS properly terminated an offer in compromise where a taxpayer failed to comply with the terms of the agreement by not filing and paying taxes in a timely manner for the five years following acceptance of the offer and by incurring a delinquent tax liability for a subsequent tax year because the taxpayer materially breached the terms of the offer. If the IRS revokes your Offer in Compromise, they will reinstate the full amount of your pre-compromise tax liability including any back penalties and interest previously forgiven, and begin aggressive collection efforts on the revised balance due. Therefore, it is imperative that once your Offer in Compromise has been approved, you need to take the following steps to make sure the IRS does not revoke your Offer: