Offer in Compromise Digital File Retention
Dusty old offer in compromise public inspection files a thing of the past?
TIGTA recommends that IRS keep offer in compromise public access files as electronic copies to better manage the retrieval, movement, retention, and destruction of files.
The tax attorney at Columbus, Ohio-based law firm Porter Law Office, LLC assists taxpayers with resolving tax debts through the offer in compromise program. An offer in compromise, or OIC, allows you to settle your federal tax debt with the Internal Revenue Service (“IRS”) for less than the full amount you owe.
If you cannot pay your tax liability in full, and the amount offered represents the most the IRS could expect to collect within a reasonable time, an offer in compromise may be a legitimate option. The tax attorney at Columbus, Ohio based Porter Law Office, LLC has in depth experience settling tax debts under the IRS’s offer in compromise program.
New Electronic OIC Public Access Files
Hard copies are a thing of the past, so why hasn’t the IRS caught on yet? The Treasury Inspector General for Tax Administration (“TIGTA”) investigated this very matter. As it relates to the offer in compromise Public Inspection Files, TIGTA wanted to make sure files were complete and to identify any potential efficiencies or cost savings.
In a recent report to the IRS, TIGTA recommended that the files be kept electronically to better manage the retrieval, movement, retention, and destruction of files. It would be much more convenient for a taxpayer to access an online profile containing their Public Inspection File than it would be to physically travel to an IRS office and deal with everything that comes with scheduling an appointment and waiting for service.
With an offer in compromise, privacy is a main concern. It is suggested that the IRS should consider the feasibility of creating an online public website that provides access to all accepted OIC files while ensuring that sensitive information is properly redacted.
Public Inspection of OIC Files?
Before researching this issue, I was not aware that OIC files were kept for public inspection. The Internal Revenue Code permits public inspection of accepted offer in compromise case files. Once an offer in compromise is accepted, the IRS creates a hard copy public inspection file that is shipped to one of seven locations around the country based on the taxpayer’s geographical residence.
In the wake of a series of high-profile scandals in the early 1950s, the IRS was required to provide access to information about accepted offer in compromises to the public. Storing the files in a decentralized, paper-based system is a labor-intensive procedure. It is also a challenge for the IRS to ensure that the paper-based files are available for review at the appropriate file location and properly redacted of sensitive taxpayer information.
When TIGTA began this review the IRS had not yet considered to modernize its delivery and file keeping methods. During the course of the review, the IRS decided to update written procedures relating to the public inspection files, expanded the use of automated redaction tools, and initiated the evaluation of alternative file storage methods. It does seem like the IRS is on its way to a simpler, more convenient file delivery system.
How Can I View OIC Public Inspection Files?
To view the files, individuals must call the IRS in advance and request an appointment. If public inspection files are not properly redacted, public inspection sites expose sensitive taxpayer information to the risk of unauthorized disclosure and put taxpayers at risk of identity theft. TIGTA believes that a centralized website available to the public presents an opportunity to decrease taxpayer burden and costs to the IRS while increasing transparency.
Contact an Experienced Ohio Tax Attorney
Offer in Compromise Representation | Columbus Tax Lawyer
If you owe the IRS a tax debt, contact the experienced tax lawyer at Porter Law Office, LLC to discuss your eligibility under the IRS’s offer in compromise program. Some tax debt relief companies will make promises that are simply not true. Columbus, Ohio tax attorney Matthew R. Porter, Esq. LL.M. understands that not everyone qualifies for an offer in compromise. By analyzing your reasonable collection potential, Mr. Porter will be able to determine your eligibility for an IRS collection alternative, including the offer in compromise program. Contact the experienced Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a free consultation to discuss your particular IRS tax needs and options to file for an offer in compromise.