Most ICOs take 7 to 12 months to complete, meaning taxpayers would send 7 to 12 monthly payments to the IRS. These payments can be significant and there is no guarantee that the IRS will accept the OCI. In most cases, it takes about six months for the IRS to decide whether to accept or reject your transaction offer. However, if you have to challenge or appeal your decision, the process may take much longer.
There are cases where the IRS doesn't even consider your offer as a transaction. Processing times vary, but you can expect it to take at least six months for the IRS to decide whether to accept or reject your transaction offer (OIC). The process can take much longer if you have to challenge the examiner's findings or appeal your decision. If accepted, your transaction offer (OIC) will take approximately 6 to 8 months.
Generally, a transaction offer decision can take 9 to 12 months. But these are not typical times. If you owe back taxes to the IRS or have a major bill 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 pledge offer process and provides you with helpful tips and suggestions at every step of the process. Start by answering simple questions about taxes.
Wiztax then calculates the settlement amount for your pledge offer and completes all the IRS forms for you. Our Wiztax experts have decades of experience in tax law and the IRS, and are always available to answer tax questions, help with the pledge 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 compromise offer. You can rest easy knowing that all your questions, from the simplest to the most complex, will be answered.
Finally, the examiner will accept or reject the proposed amount. If your transaction offer is accepted, it is likely that the process took 6 to 8 months. If your transaction offer is rejected, you can appeal the rejection to the IRS appellate office, which would likely extend the entire processing time of the commitment offer to approximately 14 to 24 months. There are several specific steps an OCI takes, and it's important to make sure you understand the steps of the transaction offer.
As long as 2 years have elapsed since you submit your offer, the IRS will not automatically grant you a settlement as long as you take one of these steps. If you want your commitment offer to be accepted as soon as possible, you should avoid submitting your request with errors. The greater your financial difficulties, the better your chances of accepting a commitment offer. Unfortunately, the IRS's offer for rules of engagement hasn't become more lenient, even in these difficult times.
The IRS uses your earnings as a primary factor in calculating the amount you will accept in a transaction offer. At the start of the pandemic, the IRS closed its offices, including its offering in commitment units. Now, the IRS is slowly catching up, but is falling behind in processing and investigating compromise offers. We've put together an overview of the steps and schedule of the Commitment Offer (OIC) so you know what to expect.
An IRS decision would be to reject the offer, return it as unprocessable, withdraw the offer on its part, or not continue to make payments under a periodic payment offer. The IRS is experiencing delays due to the pandemic, which has been offering engagement investigations longer than ever. Consult a tax resolution lawyer to evaluate your case and get help filing your IRS offer in Commitment. If you prove to the IRS that you have the capacity to pay the offer on transactional terms, you may be well on your way to becoming tax-debt-free.