IRS revises OIC procedure for Filed but Unprocessed 2020 or 2021 Returns


The current guidance provides that offers submitted where IRS does not indicate a required return has been received will be deemed not processable.

The IRS issued temporary guidance for Specialty Collection Offer in Compromise (SCOIC), when a 2020 or 2021 IMF tax return has not been processed due to a revised processing schedule as a result of the COVID-19 pandemic.

Under the new guidance, the IRS will not return the OIC as not processable.

If the status of a return is not known, employees are to attempt to secure a copy of the unfiled tax return.

If the taxpayer provides evidence of filing, the IRS will not return the OIC as not processable until IRS has processed all backlogged returns.

If the taxpayer cannot provide a copy of the filed return, but the OIC has the potential to be a TIPRA mandatory acceptance, the IRS will not remove the period from the OIC, or will not withdraw the OIC until the balance due period posts.

If the OIC can be recommended for acceptance, the IRS should continue to monitor the OIC every two weeks for posting after an initial eight-week period).

If the OIC is acceptable and the returns will have a balance due, the IRS will hold the OIC open until the return has processed, unless the TIPRA mandatory acceptance date is within 90 days and the balance due return has not posted, in which case the IRS will return the OIC based on pending assessments guidance in IRM Taxpayers can also choose to withdraw the offer and wait for the assessment.