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Published:   |   Last Updated: February 8, 2024

TAS facilitates an acceptance of a taxpayer’s offer in compromise

TAS Success Stories

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer issues. All personal details are removed to protect the privacy of the taxpayer.

A taxpayer filed an offer in compromise (OIC) because they were unable to pay their IRS debts. They included the required processing fee, which the IRS applied to the outstanding balance, and the application fee. The OIC was rejected, but the payment was not returned. The taxpayer subsequently submitted a new OIC, which the IRS also rejected because the IRS records showed the original OIC was still open. During this time, the taxpayer filed an appeal. The taxpayer was also at risk of being certified to the Department of State by the IRS as having a seriously delinquent tax debt, which could result in the taxpayer’s current U.S. passport be revoked.

TAS advocated in this case by having the IRS close the first OIC off of the system and apply the prior fee payment to the current OIC – preventing the taxpayer from having to pay again or have the OIC rejected.  As a result, the payment was properly applied to the taxpayer’s account, the IRS accepted the OIC, and taxpayer was no longer at risk to lose his passport.

When working with the Taxpayer Advocate Service, each individual or business taxpayer is assigned to an advocate who listens to the problem and helps the taxpayer understand what needs to be done to resolve their tax issue. TAS advocates will do everything they can to help taxpayers and work with them every step of the way. Occasionally we feature stories of taxpayers and advocates who work together to resolve complex tax issues. Read more TAS success stories.

Learn more about whether TAS can help you: TAS eligibility – https://taxpayeradvocate.irs.gov/about-us/learn-more-eligibility.

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