Q: After an OIC approval, and I've complied with all the approval terms, is there any way the IRS can still collect?
After receiving an Offer In Compromise approval, and provided I comply with all the approval terms, i.e. pay my taxes in full and on time for 5 years, is there any way the IRS can still collect back taxes?
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A:
If you have received an Offer in Compromise (OIC) approval from the IRS and comply with all the terms of the agreement, including paying your taxes in full and on time for the next 5 years, the IRS generally cannot collect on the back taxes that were included in the OIC agreement.
However, there are a few exceptions where the IRS may still have the right to collect:
1. If you fail to comply with the terms of the OIC agreement, such as not filing tax returns or paying your taxes on time during the 5-year compliance period, the OIC may be defaulted, and the IRS can collect the original tax debt.
2. If the IRS discovers that you provided false information or concealed assets during the OIC process, they may terminate the agreement and pursue collection of the original tax debt.
3. If you have other tax debts that were not included in the OIC agreement, the IRS can still collect on those debts.
Assuming none of these exceptions apply and you adhere to the terms of the OIC agreement, the IRS should not collect on the back taxes covered by the approved Offer in Compromise. It's crucial to carefully review and comply with all the terms of the OIC agreement to ensure the success of the settlement.
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