How long does an offer in compromise take?
By Todd Whalen - April 24, 2019
How long does it take to get an Offer in Compromise accepted?
When it comes to the IRS offer in compromise processing time, the time frame can vary. Your IRS Offer in Compromise could possibly be accepted by the IRS in as little as four weeks but will likely take from 6 to 8 months. Once the IRS determines you have met all the qualifying criteria and your request can be processed, which usually takes 3 to 6 weeks, your OIC is delivered to an IRS Offer in Compromise Examiner. The Examiner will determine what your Reasonable Collection Potential (RCP) is by analyzing the supporting documents your tax resolution service sent in and auditing your assets to determine their worth. Your proposed repayment amount will either be accepted or rejected by the Examiner. You should have an answer within 6 to 8 months if your OIC is accepted. If your OIC is rejected, you can appeal the rejection to the IRS Office of Appeals. Taking this action will likely extend the entire IRS Offer in Compromise processing time to approximately 14 to 24 months.
What is an IRS Offer in Compromise?
An IRS Offer in Compromise is a program offered by the Internal Revenue Service that allows qualified tax paying individuals with an unpaid tax debt in the U.S. to negotiate a settlement amount that is less than the total dollar amount owed to the IRS to clear the debt.
Many American taxpayers are faced with a tax debt they are not prepared for, not equipped to pay in full, and unsure what to do about it. If you find yourself in this situation, there’s no need to panic. Too many people are unaware of the IRS program that makes it easier to pay a tax debt. It’s called an IRS Offer in Compromise, and there are professional OIC tax services which are well versed in how this IRS debt repayment program works. They can handle all the necessary details for you so that you can rest easy knowing your tax debt responsibility is taken care of the right way.
How does an Offer in Compromise Work?
In short, if you lack the ability to pay your tax debt in full, you can work out a compromise to pay less than the full amount owed by applying for the IRS Offer in Compromise program. Once you have filed all required tax returns, the IRS has determined that you meet all the qualifying criteria, and you have been deemed eligible for this program, you may need to make an initial payment. The IRS will apply all payments submitted to reduce the taxes owed. Check out the IRS website’s instructional page at https://www.irs.gov/payments/offer-in-compromise for a detailed explanation of all the facets of the program.
How much will the IRS settle my debt for?
The IRS has an Offer in Compromise Pre-Qualifier tool on their IRS.gov website which offers an estimate of an acceptable offer amount. Taxpayers can go through the steps outlined to find out if they meet the basic qualifying requirements. The IRS makes a final decision on whether to accept the offer based on the submitted application.
Where can I go for help with an IRS Offer in Compromise?
There are tax resolution services that can help you with the mechanics of submitting an Offer in Compromise. These OIC tax services utilize tax attorneys, Certified Public Accountants, and other tax professionals who understand the Offer in Compromise guidelines, rules of submission, and acceptable practices. They can provide you with professional tax relief by negotiating on your behalf to reduce your tax debt with the IRS.
Where can I get reputable OIC tax services?
Advanced Tax Solutions is here to offer you the perfect solution to your tax preparation and IRS Tax Problems. If you live in the Denver area, feel free to stop by our local office and meet with one of our experienced tax professionals. Meeting with our licensed tax professionals can help you find answers and give you peace of mind. We offer every new client an initial consultation at no charge.
If you have questions about an IRS Offer in Compromise or other tax questions or issues, give us a call at (303) 753-6040 or use our convenient online contact form to get the tax help you need today from a qualified tax resolution service. We understand the fear, frustration, and financial ruin an IRS tax problem can cause. Advanced Tax Solutions is equipped to solve your IRS problem. We have helped thousands of clients just like you; why not be our next great story?