Offers will not be accepted if it is believed that the liability can be paid in full as a lump sum, installmentpayments extending through the remaining statutory period for collection (CSED), or other means of collection, unless special circumstances exist.2.A DATC offer amount must usually equal or exceed a taxpayer's reasonable collection potential (RCP) inorder to be acceptable. The exceptions are that when special circumstances exist as defined in IRM220.127.116.11, Effective Tax Administration and Doubt as to Collectibility with Special Circumstances, or whenper IRM 5.8.11, Effective Tax Administration, the offer may be accepted on the basis of hardship or ETA.3.
The objectives of the OIC program are: Effect collection of what can reasonably be collected at the earliest possible time and atthe least cost to the government.Achieve a resolution that is in the best interests of both the individual taxpayer and thegovernment.Provide the taxpayer a fresh start toward future voluntary compliance with all filing andpayment requirements.Secure collection of revenue that may not be collected through any other means. 1.
Revenue Procedure 2003-71, effective August 21, 2003-2 C.B. 517, defines the procedures applicable tothe submission and processing of OIC tax liabilities. Notice 2006-68, 2006-31 I.R.B. 105, providesadditional guidance regarding offers submitted on or after July 16, 2006. This handbook further describes,in detail, those processes.1.
18.104.22.168.6 (09-23-2008)Timeliness of Offer Investigations
The timeliness of case actions in an offer investigation is important not only to ensure the efficiency of theprocess, but also as a key component of taxpayer satisfaction in this program area. Managers andemployees need to ensure that communications from taxpayers are addressed in a timely manner, and thetimeliness of case actions ensure the length of the offer investigation process is as brief as reasonablypossible. The guidelines for timely case actions outlined in this IRM are intended to provide structure forthe overall offer process and to ensure investigations are completed in a responsive and efficient manner.1.These guidelines are not intended as absolute measures of performance for individual employees.Performance evaluations of individual employees must be based on reviews of the actual work producedby the employees, and take into account any special circumstances that may have impacted the ability of the employees to meet the specified guidelines. In general, unwarranted inactivity gaps in an offerinvestigation should be avoided, and offer managers should establish controls to ensure that cases withunwarranted inactivity gaps are identified and addressed appropriately.2.