It is a good day when a Taxpayer receives an IRS Letter accepting his or her Offer in Compromise (“OIC”). However, the terms and conditions do not stop there. For 5 years following acceptance, there are several contractual obligations a Taxpayer must adhere to; so that the OIC is not defaulted and the tax liability resurrected in-full. One of those requirements is that a Taxpayer stays filing and paying compliant for 5 years after acceptance. On July 7, 2020, the 5th Circuit ruled that a Taxpayer entering into an Installment Agreement within the 5-year timeline of an accepted OIC breaches the terms and condition of the original OIC, despite the fact that the settlement amount may be paid-in-full. The Court held that the OIC terms and conditions are crystal clear and any non-payment of taxes in-full following 5 years after acceptance is a breach of the Taxpayer’s OIC contract with the IRS. Remaining “current” with paying your tax obligations (that is, being compliant with an IRS Installment Agreement) is different that “timely paying” your tax obligations (an OIC requirement). Beware of this potential OIC default.