SB/SE Memo Addresses ‘Received’ Date for Compromise Offers

Expiration Date: 07-07-2023
Affected IRM: 5.8.2; 5.8.4; 5.8.8

July 7, 2021

MEMORANDUM FOR
Director, Specialty Collection, Offer in Compromise

FROM:
Kareem Williams, Acting Director, Collection Policy

SUBJECT:
Interim Guidance Involving IRS Received Date on Related Offers

This memorandum issues supplemental guidance to IRMs 5.8.2, 5.8.4, and 5.8.8 relating to the correct IRS received dates for related offers. This guidance will remain in effect until revisions to the IRM are published. Please distribute this information to all affected employees within your organization.

Purpose: Ensure the correct IRS received date is used when a related offer is secured.

Background:

IRM 5.8.2.14 provides guidance on IRS received date based on the original offer.

IRM 5.8.4.7.1 provides guidance on receipt of related offers.

IRM 5.8.8.12 discusses the determination of the 24-month mandatory acceptance time frame related to IRC 7122(f).

Procedural Change: The following verbiage will be added to upcoming revisions of affectedIRM(s):

5.8.2.14 (1) will be updated to include “If/then” chart:

If	Then
Any period(s) listed on the Related Form 656 are the same as the original Form 656:	Use the IRS received date the OE/OS annotated on top of the new Related offer. If the OE/OS omitted the IRS received date, use the IRS received date from the original offer. (The Related Form 656 on OIC SharePoint has a date field for this purpose.)
The related Form 656 contains all new periods (not listed on the original Form 656):	Use the IRS received date the Related offer was received.
Any period(s) listed on the Related Form 656 are the same and there are additional periods.	Use the IRS received date the OE/OS annotated on the top of the new Related offer. If the OE/OS omitted the IRS received date from the original offer, use the IRS received date from the original offer. (The Related Form 656 on OIC SharePoint has a date field for this purpose.)

5.8.2.14 (Reminder) currently states: The original waiver date applies to periods that were on the original offer.

This “Reminder” will be updated as follows: The original waiver date and IRS received date applies to the periods that were on the original offer.

5.8.4.7.1(2) will be updated to include:

2(a) — In circumstances where the balance of the separate liability is less than the total RCP, the OE/OS should discuss with the taxpayer/representative the option of securing full payment of the separate liability and reducing the offer amount to potentially compromise the remaining joint liabilities. If the separate liability will be full paid, an additional Form 656, related application fee and TIPRA payment will not be required. The scenario may also be present if the joint liability is less than the total RCP and only one taxpayer owes separate liabilities. The original waiver and original IRS received date applies to periods that were on the original offer.

2(b) – When preparing a related offer, refer to the chart below:

If	Then
The modules are the same as the original Form 656. For example: Original submission is for joint periods and Mr. Taxpayer has CDP and Mrs. Taxpayer does not have a CDP and all balance due modules are the same	The OE/OS will annotate the top of the related offer (Form 656) “Related to OIC# 1001XXXXXX original received date MM/DD/YYYY”. (The Related Form 656 on OIC SharePoint has a date field for this purpose.)
None of the modules on the related offer were on the original offer	The related offer will use the IRS received date stamped on the related Form 656. There should be no handwritten IRS received date on the top of the related Form 656.
There are modules on the Related offer that were contained on the original offer and additional modules that were not.	The related offer will maintain the original IRS received date. The OE/OS will annotate the top of the related offer (Form 656) “Related to OIC #1001XXXXXX original received date MM/DD/YYY” with the original IRS received date. (The Related Form 656 on OIC SharePoint has a date field for this purpose.)

5.8.4.7.1(4) table will be updated to include: “The waiver date for all liabilities will retain the original waiver and original IRS received date.”

2) One Form 656 is received with both joint and separate liabilities and there are no overlooked periods.

2) Secure an “Amended “offer for one taxpayer to include their joint and separate liabilities and a “Related” offer for the remaining taxpayer to include their joint and separate liabilities, if applicable.

2) The waiver date for all liabilities will retain the original waiver and original IRS received date.

IRM 5.8.8.12(1) will be updated to add:

Caution: The TIPRA 24-month mandatory acceptance date is based on the initial IRS received date. The IRS received date stamped on the Form 656 and shown in AOIC may require further verification. Examples:

If an IRS received date in AOIC is deemed to be incorrect, your manager must review the case and document the following in the AOIC Remarks:

If you are uncertain of the correct IRS received date, scan all applicable documents and send a timeline of events to *SBSE Coll Policy OIC.

Effect on Other Documents: This guidance will be incorporated in IRM 5.8.2, Centralized Offer in Compromise Initial Processing and Processability, IRM 5.8.4, Investigation, and IRM 5.8.8, Acceptance Processing.

Effective Date: Upon issuance

Contact: Questions regarding this memorandum may be directed to Senior Analyst, Catrina R. Dugger.

Distribution:
IRS.gov (http://www.IRS.gov)
Taxpayer Advocate Service
Independent Office of Appeals