What Happens After Your Offer in Compromise Is Accepted?
If the IRS has accepted your Offer in Compromise (OIC), congratulations — that’s a huge win.
But don’t celebrate too hard just yet.
There are a few critical steps you must follow after acceptance to make sure your offer stays in good standing.
At Boulanger CPA, we’ve seen cases where the IRS accepted an offer… only to default it later because of simple mistakes. Here's how to protect your settlement and avoid future problems.
The IRS doesn’t just forget about you after accepting an Offer in Compromise.
Once your offer is accepted, you must:
In addition, there is a critical compliance rule you must follow…
After the IRS accepts your Offer in Compromise, you must remain 100% tax compliant for the next 5 years.
That means:
If you miss a return or owe a new balance and don’t pay it, your offer can be defaulted — and the full original balance comes back.
If you violate the 5-year rule, the IRS will send a notice of default.
At that point:
There are very few exceptions to this rule. Even a small new tax debt can trigger a default.
Here’s how to protect your Offer in Compromise after it's accepted:
If you run into a problem (illness, job loss, etc.), contact the IRS proactively. Do not let a balance go unpaid.
In rare cases, yes. You may be able to:
But the better approach is to never default in the first place.
The OIC program gives you a second chance. Don’t waste it.
We help Oklahoma clients:
Need help staying on track after your offer is accepted?
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FAQ
What is the IRS 5-year rule after an OIC?
You must file all tax returns and pay any new taxes on time for 5 years after acceptance. Failure to do so can default your agreement.
What happens if I default on my Offer in Compromise?
The IRS reinstates your full original debt, minus any payments made, and can resume collection efforts including liens and levies.
Can I fix a defaulted OIC?
Sometimes. If you had a hardship or error, you may be able to appeal or reapply, but it’s better to avoid default in the first place.
How do I stay compliant after my OIC is accepted?
File on time, pay any new tax balances, adjust withholding or estimates if needed, and work with a CPA to stay ahead of problems.
✍️ About the Author
Marc Boulanger, CPA, is the founder of Boulanger CPA and Consulting PC, a CPA firm based in Oklahoma City, OK.
Marc is the author of Oklahoma Taxpayers' Guide: Taking a Stand Against the IRS and has resolved hundreds of complex federal and state tax cases.
With over a decade of experience in IRS and OTC representation, Marc helps Oklahomans navigate high-stakes tax problems with clear strategy and calm expertise.
He is a Certified Tax Representation Consultant and a member of the American Society of Tax Problem Solvers (ASTPS).
📍 Office: Oklahoma City, OK | 📞 (405) 384-4900 | 🌐 www.oklahomacity.cpa
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