requiring that an up-front 20%, nonrefundable payment, plus US$205, be submitted along with the OIC in the case of a cash offer. An offer submitted without the required fees is subject to rejections without appeal. After the IRS receives the offer, the IRS has two years to make a decision. If the decision is not reached by that time, then the offer is automatically accepted. Under the Tax Increase Prevention and Reconciliation Act of 2005, if a taxpayer chooses to make payments over time, i.e. monthly, the taxpayer must include with the offer the first month's payment. The taxpayer is not required to submit the 20%, which applies only to the lump-sum payment option. Then, during the time that the offer is being considered by the IRS, the taxpayer must keep making the monthly payments to keep the offer current. If the taxpayer fails to make the payments, the offer will be returned to the taxpayer. In the case of both the application fee and either the 20% down payment or the monthly payments, a low-income taxpayer may be exempt from both. Taxpayers should review Form 656A to determine whether these fees and payments apply to them. Effect on levies and liens An OIC will have no effect upon a tax lien. The lien will remain in effect until the offer is accepted by the IRS and the full amount of the offer has been paid in full. Once the offered amount has been paid, the taxpayer should request that the IRS remove the lien. An OIC will stop tax levies under section 301.7122(g)(1) of the US Federal Tax Regulations. That regulation states that the IRS will not levy upon a taxpayer's property while a valid OIC (an offer that has been accepted for processing) is pending, and if rejected, for 30 days after the rejection. If the taxpayer appeals the rejection, the IRS cannot levy while the appeals process is ongoing. If a levy is in place when the offer is submitted, it is not automatically released. Consumer alert In 2004, the IRS issued a consumer alert warning of promoters' claims to settle debts for "pennies on the dollar" through the OIC program. The warning addressed companies charging high fees to consumers who may not be eligible for the program; all other payment means would have to be exhausted, including installment payments. A recommendation is to check with the