Right to appeal If the IRS rejects an OIC, the taxpayer will be notified by mail. 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's Independent Office of Appeals. First, try to talk directly to the specialist and try to persuade him to reverse course. Ideally, this should have been done before the rejection letter came out, but sometimes you can save an offer from the ashes with a little finesse and a good argument.
What happens if the IRS rejects a request for a commitment offer? The good news is that a commitment offer can be recalculated, re-archived and renegotiated. It's not the end of the world if you receive a rejection letter from the OIC. You can still overturn the decision by filing an appeal. Applicants have 30 days after receiving the denial to file an appeal.
You will need to complete Form 13711 (IRS Commitment Offer Appeal Request) to process the request. The IRS can make a lot of mistakes in its commitment analysis. You have the right to appeal the rejection and put things in order. The rejection letter from the IRS is final only if you let it be final.
The rejection gives you 30 days to appeal and challenge the IRS calculations; nothing is final until your appeal is heard. Don't assume that the IRS is right. Even if they're correct, that doesn't mean you don't have other resolution options, such as bankruptcy, to consider. If the IRS rejects your commitment offer, you can appeal the decision.
You have 30 days from the date of denial to file an official appeal request. To do so, complete this form and follow the instructions included in your rejection letter. Their experience often exposes them to many different controversies and, if their arguments are credible (as they should be, since you are appealing), they will often accelerate the resolution of your offer in order to reach an agreement. The short answer here is that the IRS rejects a return when the amount of your offer is less than your reasonable collection potential.
In conclusion, despite some of the advantages of resorting to appeals, it is always best to try to resolve an offer in a negotiated manner before reaching it. You just received a letter from the IRS notifying you that your offer is being rejected out of commitment. Compromise offers can be returned for a variety of reasons, whether procedural, administrative or administrative. One of the reasons your offer may be rejected is because the IRS assumes that you can, in fact, pay the full amount of your future income.
The most common reason is that the IRS felt that the offer was insufficient; the offer simply wasn't big enough. After the IRS rejects your offer, you still have 30 days from the date of that rejection letter to appeal your offer and appeal the rejection of the offer. If you are considering filing an OIC with the IRS, or have already had one rejected, call me. If you do it less than a month after the first offer, you don't need to file a new Form 656, just a letter increasing the amount of money you offer.
If you don't qualify for a commitment offer or if your offer is rejected, look for debt solutions, such as settlement and consolidation. As a reminder to the reader, an IRS commitment offer (OIC) is a tax agreement with the IRS in which the taxpayer agrees to pay a specific amount and the IRS agrees to commit the remaining liability. It's possible that your original proposal lacked information or didn't address the factors that could have made the final verdict go in your favor. The OIC was established by the IRS as a method for dealing with outstanding tax liabilities in order to find a compromising solution.
The IRS follows the OIC rules and dismisses them even for the slightest error...