The more complex your finances are, the longer the application process will take. 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. 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 compromise offer (OIC).
The process can take much longer if you have to challenge the examiner's findings or appeal his decision. There are no set deadlines for determining how long it will take to complete an OCI. The OIC process may 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. 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 transaction 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 advice at every step of the process. Start by answering simple questions about taxes. Wiztax then calculates the settlement amount for your commitment offer and fills out 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. If your OIC is filed because of doubts about the possibility of charging it, the examiner will need to determine your reasonable collection potential (RCP).
If your OCI is rejected, you have the option of restarting the process or the possibility of filing an appeal. The first step in getting your transaction offer accepted is to mark your proposal as “actionable”, which means that you have met all the minimum requirements to qualify for an OCI. You should receive a letter with contact information from the OIC examiner to let you know that your case is moving forward. If your OIC is accepted, you must delay your part of the agreement by complying with all the requirements described in the OIC.
Subsequently, the OIC examiner will determine your reasonable collection potential (RCP) during the remaining collection period by analyzing the documents you submitted and will audit your assets to determine their value. We've put together an overview of the steps and schedule of the offer of commitment (OIC) so you know what to expect. However, you can file an OIC request that contains complete and accurate information, making it easier for the IRS to process your offer. The OIC is a contractual agreement between the taxpayer and the IRS that allows the taxpayer to settle assessed tax liabilities, plus any interest or penalty, for less than the amount of the debt owed.
The OIC program has strict requirements that taxpayers must meet in order to take advantage of the program. The Pledge Offer Program (OIC) is offered by the Internal Revenue Service (IRS) as part of its Fresh Start initiative. If you have few assets and only one source of income, it may be easier for the OIC examiner to complete this step quickly. Many factors can affect the time it will take your OCI to process, some of which are beyond your control.