Effect of An Offer in Compromise On IRS Levy or Lien
An Offer in Compromise will have no effect upon a tax lien. The lien will remain in effect until the offer is accepted by the IRS and the full amount of the offer has been paid in full. Once the offered amount has been paid, the taxpayer should request that the IRS remove the lien.
An offer in compromise will stop tax levies under section 301.7122(g)(1) of the US Federal Tax Regulations. That regulation states that the IRS will not levy upon a taxpayer's property while a valid offer in compromise (an offer that has been accepted for processing) is pending and, if rejected, for thirty days after the rejection. If the taxpayer appeals the rejection, the IRS cannot levy while the appeals process is ongoing. If a levy is in place when the offer is submitted, it is not automatically released.
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Famous quotes containing the words effect of, effect, offer and/or compromise:
“Ignorant kindness may have the effect of cruelty; but to be angry with it as if it were direct cruelty would be an ignorant unkindness.”
—George Eliot [Mary Ann (or Marian)
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