How long does an offer in compromise take?

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.

How long does an offer in compromise take?

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. 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.

There are no set deadlines for determining how long it will take to complete an OCI. The OCI process can take more than a year, but the average is approximately six months. Many factors contribute to the amount of time the IRS will need to approve or reject an OCI. If accepted, your transaction offer (OIC) will take approximately 6 to 8 months.

It usually takes six to nine months for the IRS to respond to your offer in a commitment request. Staff, funding and the time of year when the OIC is presented influence the time needed for the decision-making process. If more than two months have passed, you should check with the IRS to see how the process progresses. It's common for the IRS to take up to six months to make a decision.

Some decisions may take longer than a year. 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. Generally, a transaction offer decision can take 9 to 12 months.

But these are not typical times. You must comply with the filing and payment of all tax returns for a period of five years from the date the commitment offer is accepted, including any possible extensions. The refund that is withheld as part of the offer agreement applies to the total tax debt and is not considered a payment of the amount of the accepted offer. If it's more than you offered and you don't have special circumstances, the IRS will give you the opportunity to increase your offer amount.

At any time, you can request a conference call with the offer manager to discuss areas of disagreement. The IRS may default on the offer in the event of a transaction and reinstate the entire tax liability, minus all payments and credits received. The engagement process is quite complex and a tax professional who provides OCI tax services can greatly increase your chances of having your offer accepted. From the date the offer is accepted, no additional interest will be added to your tax debt or to the amount of the accepted offer.

The commercial loan offers that appear on this site come from companies or affiliates from which solvable may receive compensation. You can complete the transaction offer prequalification tool to find out if you are eligible for a transaction offer. However, you can file an OIC request that contains complete and accurate information, making it easier for the IRS to process your offer. The Pledge Offer (OIC) program is offered by the Internal Revenue Service (IRS) as part of its Fresh Start initiative.

If you paid an application fee that was returned to you, you must return the application fee to us; any bid payment you paid with the original offer will apply to your new offer. Generally, the IRS will only reduce your tax debt if you convince the agency that your offer is the most you're likely to receive. Solvable is not a creditor, since it does not offer, extend or alter credit; rather, it is a lead generator in the online marketplace that allows consumers to buy and compare rates, terms and costs associated with financial products such as mortgages, car loans, personal loans, student loans, etc. .


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