Important Improvements Have Been Made in the Offer-in-Compromise Process; However, Additional Efficiencies Can Be Gained

The Director, Collection Policy, Small Business/Self-Employed Division, should remind employees of the requirement to complete the processing determinations within the required 16 days and taxpayer contact within 120 days.

The Director, Collection Policy, Small Business/Self-Employed Division, should ensure that employees are aware of the requirements for sending interim letters when the initial 120-day contact date is not met. This includes reminding employees of the procedures for working error reports and managers of their responsibility to verify that the interim letters are sent when required.

The Director, Collection Policy, Small Business/Self-Employed Division, should update the COIC site National Quality Review System (NQRS) guidance to specifically include verification that alternative resolutions were discussed with taxpayers when an offer is not accepted. Additionally, management should emphasize the need to verify that employees discuss alternate resolutions in operational reviews of subordinate managers and in refresher training.