Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject 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 reject 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 doesn't even consider your offer to be compromised. It usually takes an average of six to nine months for the IRS to respond to your offer in the pledge request. Staff, funding and the time of year when the OIC is presented influence the time that elapses in the decision-making process. If more than two months have passed, 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 and 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 of a committed offer.
Usually, an offer in a commitment decision can take 9-12 months. But these are not typical times. Finally, the examiner will accept or reject the proposed quantity. If your commitment offer is accepted, the process probably took 6 to 8 months.
If your pledge offer is rejected, you can appeal the rejection to the IRS appeals office, which would likely extend the entire time of processing the pledge offer to about 14 to 24 months. Not all states offer this type of agreement, and they may have different ways of determining if you qualify. To do this, you must correctly complete the IRS forms and provide the agency with the information it needs to make a decision. The best way to ensure that your compromise offer is presented correctly is to have an experienced tax attorney guide you through the process.
If the IRS believes you can pay the tax bill in full or by making monthly payments, the agency will not approve your offer. Generally, the IRS will only reduce your tax debt owed if you convince the agency that your offer is the best they are likely to receive. The first step in getting your commitment offer accepted is to mark your proposal as “actionable”, meaning that you have met all the minimum requirements to be eligible for an ICO. For your IRS offer to be approved, you must complete the forms correctly and be sure to provide all the correct supporting documentation.
Wiztax's free online system guides you through the committed offer process and provides you with useful tips and advice every step of the way. These examples are not exclusive, but they do demonstrate that, for the IRS, the urgent processing of an offer under terms of commitment depends on time and money. To convince the Internal Revenue Service to settle your tax debt for less than you owe, you must show that the offer is the most you can afford. If the IRS hasn't responded to your offer, you should follow up to ensure that the agency received your request.
If you contact a tax debt resolution company and they tell you that you can get an offer approved without analyzing your situation, you should not work with that company. If you apply because you have doubts about liability, your offer should reflect the amount you think you actually owe. During the commitment process, the IRS reviews your financial details to decide whether or not to accept your offer. The above factors may make the process of your IRS offer faster or slower, but they can still cause your offer to be processed as quickly as possible.