Processing times vary, but you can expect it to take at least six months for the IRS to decide whether to accept or decline your commitment offer (OIC). The process can take much longer if you have to challenge the examiner's findings or appeal their decision. In most cases, it takes about six months for the IRS to decide whether to accept or decline your commitment offer. However, if you have to challenge or appeal your decision, the process can take much longer.
There are cases where the IRS won't even consider your offer as a compromise. A commitment offer decision can generally take 9 to 12 months. But these are not typical times. It generally takes six to nine months for the IRS to respond to your commitment request offer.
Staff, funding and the time of year in which the OIC is presented influence the time involved in the decision-making process. If it's been more than two months, you should check with the IRS to see how the process is progressing. It's common for the IRS to take up to six months to make a decision. Some decisions may take longer than a year.
Understanding how the IRS will respond to your commitment and anticipating your response can help you get through these difficult times. The IRS Offer in Compromise program is very popular because it allows you to pay your IRS tax debt for less than you owe. The best way to ensure that your compromise offer is presented correctly is to have an experienced tax lawyer to guide you through the process. These forms can help you calculate how much you should offer based on the capital of your assets, your monthly disposable income, and your future income potential.
This amount is called the offer amount and represents an estimate of how much the IRS will accept to settle a tax bill. Unfortunately, the IRS's compromise offer rules haven't become more lenient even in these difficult times. 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. 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 your commitment offer is rejected, you can appeal the rejection to the IRS appeals office, which would likely extend the entire processing time of the commitment offer to about 14 to 24 months. We know what questions to ask so that the IRS gets the most complete and accurate information needed to make a decision about your commitment offer. The first step in getting your commitment offer accepted is to mark your proposal as “actionable”, which means that you have met all the minimum requirements to be eligible for an OIC. The commitment process is quite complex and a tax professional who provides OIC tax services can greatly increase your chances of having your offer accepted.
Your OIC is then handed over to an IRS commitment offer examiner, who will send you a letter in about 4 to 6 weeks stating who you are and your contact information. The IRS offers installment agreements as a solution for taxpayers who cannot pay their tax debts in a lump sum. Once again, Wiztax determines which commitment offer forms should be completed and fills them out for you. Check the state tax page and then follow the link to your state to see if it offers an OIC program.