“Tax” Assessed (refund issued larger than actually due)

[chad]

If a taxpayer was issued a much larger refund than they were actually due, then the IRS assessed a ‘tax’ for the difference, could this refund overpayment qualify for an OIC? (Assuming their financial circumstances are going to change and they won’t be able to pay it all with an installment agreement.)

[Eric Green]

Chad, I am just a little unclear: they got the money and knew it wasn’t theirs but spent it anyway, or were they audited and the adjustment happened? If it is the first scenario I admit I have never seen that, but see no reason it cannot be compromised. It is just weird. What tax year did this happen for?

[Author]

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