Ezel / IRS Rulings / 200907026

CCA 200907026: An accepted offer in compromise could not be rescinded

Number
200907026
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Offers in Compromises
Topics
Procedure, penalties, and administration
Code sections
§ 7122
Ruling dated
July 9, 2008
Publicly released
February 13, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel discussed a closed case in which the IRS had already accepted a taxpayer's offer in compromise. The advice states that the accepted offer could not be rescinded and notes that the taxpayer's offer had shown that he had no money. To obtain a refund of the money at issue, the taxpayer would need to return to court and obtain an order directing the IRS to make the refund.

Ruling snapshot

  • Question: Could the IRS rescind an already accepted offer in compromise and refund the money at issue without further court action?
  • Outcome: Advice given: the offer could not be rescinded, and a court order was needed for the refund.
  • Key authorities: IRC § 7122.

Full text (IRS public release)

ID: CCA-791718-08 Number: 200907026
Release Date: 2/13/2009
Office: ----- ------------
UILC: 7122.00-00

From: --------------------
Sent: July 9, 2008
To: -------------
Cc:
Subject: Re: ----------- case ---------

I talked to ----------------, who told me that the case is closed and that she didn't need anything from me. We had already accepted the offer and there was no way to rescind it. The taxpayer didn't have any money and showed that in his offer. -------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------I did tell ---------that the taxpayer needs to go back to the court to have the court order us to refund the money. I don't know if she has any contact with the taxpayer since the case is now closed.

I hope that helps. Again, feel free to call me with any restitution issues that you have.

----------

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace