Offer in Compromise (OIC) Taxpayers

Do not lock in a taxpayer who has submitted an OIC for consideration or has had an OIC accepted as identified by either an unreversed TC 480 or TC 780 on IDRS.

Check IMFOLI for the OIC indicator: "-Y." If present, take the following actions:

Issue Letter 2809C to the employer(s) and Letter 2813C to the taxpayer, to release the lock-in.

Advise the taxpayer to adjust their withholding.

Input TC 972 AC 146 with disposition code "OIC" .

Document the history and close the case.

If taxpayer responds that an OIC has been submitted and the OIC indicator is present on IMFOLI, take the actions in (2) above.

If the taxpayer tells you that an OIC has been submitted and there is no evidence of it on IDRS, contact the Compliance Services Offer in Compromise Unit at the campuses. (See SERP - OIC Compliance Campus Locations for the Monitoring of Accepted Offers - Who/Where (irs.gov)) and follow their instructions.

If you are instructed to release the lock-in, follow instructions in (2) above; document the history with the name of the employee providing the direction.