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 look at your offer as a compromise. It generally takes the IRS an average of six to nine months to respond to your request for a commitment 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 more than a year. You want to submit a compromise offer to the IRS, but you need an answer and relief now, quickly. Your circumstances are immediate, but it takes a minimum of 6 to 9 months for the IRS to process, investigate, and obtain management approval for a commitment offer.
If you owe back taxes to the IRS or have a major bill that you can't pay, you have options. The IRS isn't going anywhere, but if you work with them, they can help you resolve your tax debt. One such way to resolve back taxes is the compromise offer. The commitment offer process is a way to pay less tax debt than you owe.
Wiztax's free online system guides you through the commitment offer process and provides you with helpful tips and advice at every step of the process. Start by answering simple tax questions. Then, Wiztax calculates the settlement amount of your commitment offer and fills out all of the IRS OIC forms for you. Our Wiztax experts have decades of experience in tax law and in the IRS, and are always available to answer tax questions, help with the compromise offer process, and review all IRS OIC forms before filing them.
We know what questions to ask so that the IRS receives the most complete and accurate information needed to make a decision about your commitment offer. You can rest easy knowing that all your questions, from the simplest to the most complex, will be answered. Not all states offer this type of agreement, and they may have different ways of determining if you qualify. In other cases, the IRS may deny your request because the offer is too low and the agency believes it can pay more.
The investigation of your offer may not be completed while there is a pending claim or an open audit of any fiscal year in which you owe an obligation. In fact, the IRS only accepts these offers if it believes that the taxpayer cannot pay the tax liability in full or through a monthly payment plan. Calculations of net realizable capital in assets and monthly disposable income incorporate many complicated rules that you must follow to correctly calculate your OIC rating and the amount of the offer. If you apply for reasons of doubt as to liability, your offer should reflect the amount you think you actually owe.
A Form 656 with an application fee and an offer to pay if you are committing collective or corporate responsibility. 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. He has been a leader in helping taxpayers and tax professionals resolve tax issues with the IRS, where he worked for 19 years in various compliance positions. If you don't qualify for low-income certification or haven't checked the low-income certification box, your offer will be returned to you.
Most people won't qualify for an OIC unless they have filed all of their tax returns and made all the estimated tax payments required for the current year (if applicable). If the IRS believes that you can pay the tax bill in full or by making monthly payments, the agency will not approve your offer. 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. You can provide additional documentation or verification to support a different assessment than that of the employee who is investigating your offer.
You have the best approval rates if you work with a specialized tax lawyer, public accountant, or registered agent. In general, the IRS will only reduce your tax debt owed if you convince the agency that your offer is the most likely they will receive. .