Attorney Criticizes Proposed OIC Fees

From: postoffice@www.qai.irs.gov

[2] It is well known in the tax practice community that the IRS never really liked offers in compromise. Quite frankly, it appears that the IRS will work very hard to find a way to deny an offer in compromise.

[3] Imposing a fee for submitting an offer to pay the Government more money that it could collect through nonvoluntary collection activities seems to cement the belief that the IRS is not really serious about offers in compromise. Unfortunately, as it stands now, IRS Revenue Officers solcit offers in compromise as a way to "close" their cases.

[4] Anything that the IRS does to make it harder for people to give it money really does defeat the purpose of the offer in compromise system.

[5] All fees do is discourage the use of the procedure that the fee is imposed on. If that is what the IRS is trying to do, then the fee is a good thing.

[6] I would suggest that if the IRS is dying to charge a fee for this service that the fee be imposed after the offer is declined. Much like the fee the IRS now charges for filing a tax lien.