If you make a deal with the IRS using the Offer in Compromise program - Offer in Compromise program - history, you are required to be compliant on your taxes for FIVE YEARS. If you pass the five years without any marks, you are free and clear. So does that mean if you owe the IRS again AFTER the five years mark, that you could utilize the program again? Yes it does.
In fact a client of Washington Tax Services from the '90's is rehiring us here in 2011 to address a new tax liability he created and the likely solution is going to be an Offer in Compromise.
