Ezel / IRS Rulings / 201052014

CCA 201052014: The offer-in-compromise evaluation rule applies to all offers

Number
201052014
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Offers in Compromises
Topics
Procedure, penalties, and administration
Code sections
§ 7122
Ruling dated
August 24, 2010
Publicly released
December 30, 2010
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 2010, 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 2010
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 Advice considered whether the regulation governing offers in compromise applies only to low-income taxpayers. It explains that IRC § 7122(d)(3) protects a low-income taxpayer from rejection based solely on the offer amount. The advice states that Treas. Reg. § 301.7122-1(f)(3), which requires evaluation under the regulation and IRS policies, applies to all offers, not only those submitted by low-income taxpayers.

Ruling snapshot

  • Question: Does the offer-in-compromise evaluation regulation apply only to low-income taxpayers?
  • Outcome: Advice given
  • Key authorities: IRC § 7122(d); Treas. Reg. § 301.7122-1(f)(3)

Full text (IRS public release)

ID: CCA_2010082415441250 Number: 201052014
Release Date: 12/30/2010
Office: ----------
UILC: 7122.00-00

From: -----------------------
Sent: Tuesday, August 24, 2010 3:44:16 PM
To: ----------------------------------------------------------------------------------- Cc: Subject: RE: Redefine RCP questions

IRC 7122(d)(1) directs the Service to prescribe guidelines for evaluating offers-in- compromise.

IRC 7122(d)(3) states that such guidelines shall provide "(A) an officer or employee of the Internal Revenue Service shall not reject an offer-in-compromise from a low-income taxpayer solely on the basis of the amount of the offer."

Treas. Reg. section 301.7122-1(f)(3) states: "No offer to compromise may be rejected solely on the basis of the amount of the offer without evaluating the offer under the provisions of this section and the Secretary's policies and procedures regarding the compromise of cases." The regulation applies to all offers, not just those submitted by low-income taxpayers.

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