- Instructor: Attorney Bob Schaller
- Lectures: 5
- Quizzes: 1
IRS Returning the Offer.
The IRS can “return” both a processable and an unprocessable Offer in Compromise application to a taxpayer without “accepting” or “rejecting” the offer. The IRS’s return of an application closes the Offer in Compromise application review process. A “return” is defined as a non-acceptance recommendation that does not include appellate rights. IRM § 18.104.22.168.6 (1) (12-20-2018). The term “return” when used in the Offer in Compromise context can be a verb indicating the IRS’ action to stop the consideration of an Offer in Compromise application (e.g. the IRS “returned” the offer); it can also be used as an adjective modifying a noun (e.g. the “returned” offer was fatally flawed). The term “return” when used in the Offer in Compromise context should not be confused with the noun indicating a form or document submitted to the IRS (e.g. the taxpayer filed a Form 1040 “return”).
Upon receipt of an Offer in Compromise application, the IRS must initially classify the application as either “unprocessable” or “processable.” IRM § 22.214.171.124(1) (12-20-2018). The return of unprocessable applications is discussed first followed by a discussion of returning processable applications.
Overview of the IRS "Returning" an Offer
Returning an Unprocessable Application
Returning a Processable Application
Return Reconsideration Procedure