As a taxpayer, you must understand and agree to the following conditions that will apply in an offer in compromise:

(a) The taxpayer agrees to submit voluntarily all tax payments made on this offer, including the mandatory payments of tax required under section 7122(c). These payments are not refundable even if the taxpayer withdraws the offer prior to acceptance or the IRS returns or rejects the offer. If the offer is accepted, the IRS will apply payments made after acceptance in the best interest of the government.

(b) Any payments made in connection with this offer will be applied to the tax liability unless the taxpayer specifies that they be treated as a deposit. Only amounts that exceed the mandatory payments can be treated as a deposit. Such a deposit will be refundable if the offer is rejected or returned by the IRS or is withdrawn. The taxpayer also understands that the IRS will not pay interest on any deposit.

(c) The application fee for the offer will be kept by the IRS unless the offer was not accepted for processing.

(d) The taxpayer agrees to comply with all provisions of the Internal Revenue Code relating to the filing of his/her return and the payment of the required taxes for five years or until the offered amount is paid in full, whichever is longer. In the case of a jointly submitted Offer in Compromise joint liabilities, the taxpayer understands that default with respect to the compliance provisions described in this paragraph by one party to this agreement will not result in the default of the entire agreement. The default provisions described in Section V(i) of this agreement will be applied only to the party failing to comply with requirements of this paragraph.

(e) The taxpayer waives and agrees to the suspension of any statutory periods of limitation (time limits provided by law) for the IRS assessment of the liability for the periods identified in Section II. The taxpayer understands that he/she does have the right not to waive these statutory periods or to limit the waiver to a certain length or to certain periods. The taxpayer understands, however, that the IRS may not consider this offer if the taxpayer refuses to waive the statutory periods for assessment or if the taxpayer provides only a limited waiver. The amount of any Federal tax due for the periods described in Section II may be assessed at any time prior to the acceptance of this offer or within one year of the rejection of this offer. The taxpayer understands that the statute of limitations for collection will be suspended during the periods an offer is considered pending by the IRS (paragraph (k) of this section defines pending).

(f) The IRS will keep all payments and credits made, received or applied to the total original liability before submission of this offer and all payments required under section 7122(c). The IRS will also keep all payments in excess of those required by section 7122(c) that are received in connection with the offer and that are not designated as deposits in Section IV. The IRS may keep any proceeds from a levy served prior to submission of the offer, but not received at the time the offer is submitted. As additional consideration beyond the amount of the taxpayer’s offer, the IRS will keep any refund, including interest due to the taxpayer because of overpayment of any tax or other liability, for tax periods extending through the calendar year in which the IRS accepts the offer. The date of acceptance is the date on the written notice of acceptance issued by the IRS to the taxpayer or to the taxpayer’s representative. The taxpayer may not designate an overpayment ordinarily subject to refund, to which the IRS is entitled, to be applied to estimated tax payments for the following year.

(g) The taxpayer will return to the IRS any refund identified in paragraph (f) received after submission of the offer.

(h) The IRS cannot collect more than the full amount of the liability under this offer.

(i) The taxpayer understands that he/she will remain responsible for the full amount of the liabilities, unless and until the IRS accepts the offer in writing and the taxpayer has met all the terms and conditions of the offer. The IRS will not remove the original amount of the liabilities from its records until the taxpayer has met all the terms and conditions of the offer. The taxpayer understands that the liabilities that he/she offers to compromise will remain liabilities until the taxpayer has met all the terms and conditions of the offer. If the taxpayer files for bankruptcy before the terms and conditions of the offer are completed, any claim the IRS files in the bankruptcy proceedings will be a tax claim.

(j) Once the IRS accepts the offer in writing, the taxpayer has not right to contest, in court or otherwise, the amount of the liability.

(k) The offer is pending starting with the date an authorized IRS official signs the form. The offer remains pending until an authorized IRS official accepts, rejects, returns or acknowledges withdrawal of the offer in writing. If the taxpayer appeals an IRS rejection decision on the offer, IRS will continue to treat the offer as pending until the Appeals Office accepts or rejects the offer in writing. If the taxpayer does not file a protest within 30 days of the date the IRS notifies the taxpayer of the right to protest the decision, the taxpayer waives the right to a hearing before the Appeals Office about the offer in compromise.

(l) If the taxpayer fails to meet any of the terms and condition of the offer and the offer defaults, the IRS may:

* Immediately file suit to collect the entire unpaid balance of the offer;
* Immediately file suit to collect an amount equal to the original amount of the liability, minus any payment already received under the terms of this offer;
* Disregard the amount of the offer and apply all amounts already paid under the offer against the original amount of the liability; and/or
* File suit or levy to collect the original amount of the liability, without further notice of any kind.

The IRS will continue to add interest, as section 6601 of the Internal Revenue Code requires, on the amount the IRS determines is due after default. The IRS will add interest from the date the offer is defaulted until the taxpayer completely satisfies the amount owed.

(m) The IRS generally files a Notice of Federal Tax Lien to protect the Government’s interest on offers with deferred payments. Also, the IRS may file a Notice of Federal Tax Lien during the offer investigation. This tax lien will be released when the payment terms of the offer agreement have been satisfied.

(n) The taxpayer understands that IRS employees may contact third parties in order to respond to this request and the taxpayer authorizes the IRS to make such contacts. Further, by authorizing the IRS to contact third parties, the taxpayer understands that he/she will not receive notice, pursuant to section 7602(c) of the Internal Revenue Code, of third parties contacted in connection with this request.

(o) By filing the offer, the taxpayer is offering to compromise all the liabilities assessed as of the date of this offer and under the taxpayer identification numbers listed in Section II above. The taxpayer authorizes the IRS to amend Section II, above, to include any assessed liabilities the taxpayer fails to list on Form 656.

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.