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.
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. 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. The IRS is experiencing delays due to the pandemic, which has been offering engagement investigations longer than ever.
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. If you apply based on concerns about liability, your offer should reflect the amount you think you actually owe. This may sound like a lot, but if your offer is accepted, you'll save a lot more money in taxes than you pay in fees. If the IRS believes that you can pay your tax bill in full or by making monthly payments, the agency will not approve your offer.
Not all states offer this type of agreement and they may have different ways to determine if you qualify. For your IRS offer to be approved, you must complete the forms correctly and ensure that you provide all the correct supporting documentation. You answer simple tax questions, then Wiztax calculates the amount of your commitment offer and complete the entire IRS offer on the commitment forms you'll need to file. Consult a tax resolution lawyer to evaluate your case and get help filing your IRS compromise offer.
Unfortunately, the IRS's offer for rules of engagement hasn't become more lenient, even in these difficult times. If you want your commitment offer to be accepted as soon as possible, you should avoid submitting your request with errors. However, you can file an OIC request that contains complete and accurate information, making it easier for the IRS to process your offer. .