However, statistically, the odds of getting a compromise offer from the IRS are quite low. Liability doubt occurs when there is a genuine dispute over the existence or amount of the correct tax debt under the law. If you have legitimate doubts that you owe part or all of the tax debt, you should complete a PDF of Form 656-L, Commitment Offer (Liability Question). The taxpayer has sufficient assets to meet the tax obligation.
The taxpayer provides full-time care and assistance to her dependent child, who has a serious long-term illness. It can be difficult to get an offer approved. The IRS rejects most OIC requests. To convince the Internal Revenue Service to pay off your tax debt for less than you owe, you must show that the offer is the most you can afford.
If you paid an application fee that was returned to you, you must return the application fee to us; any offer payment that you paid with the original offer will apply to your new offer. The IRS will keep any refunds, including interest, that may be due on tax returns filed up to the date the IRS accepts the offer. Before submitting a commitment offer with a liability question, you should understand the difference between the liability question and the collectability question. Before considering this type of resolution option, be sure to read the requirements in detail to see if you meet them.
Second, the price depends on the complexity of the tax issues and the time needed to prepare documents and manage negotiations on your behalf. If you contact a tax debt resolution company and they tell you that you can get an offer approved without analyzing your situation, you shouldn't work with that company. The IRS can be very picky about compromise offers (since it wants to avoid leaving money on the table), and getting an offer accepted is often easier said than done. The IRS responds in a response email saying that the taxpayer can withdraw their IRA savings from the local bank, but must deposit those savings back into a new IRA account within 90 days.
The letter will explain why the IRS rejected the offer and will provide detailed instructions on how the taxpayer can appeal the decision to the IRS Independent Office of Appeals. If you do not make the payment, the offer will be withdrawn and returned to you without the right to appeal. As a result, if the IRS accepts your offer, the chances that the state will accept a compromise offer increase, but it is not guaranteed. If you decide to pay a larger amount in five months, the IRS will calculate the disposable income for a year.
It generally takes six to nine months for the IRS to respond to your commitment request offer. After the audit, the taxpayer discovers that they have not been correctly informed about the required renewal period and that they are responsible for paying additional taxes, penalties and tax additions for not having redeposited the amount within 60 days.