They are not in open bankruptcy proceedings. Have a valid extension for a current year return (if you apply for the current year). If your client's OIC is denied, you can file an appeal using Form 13711 within 30 days of the date of the denial notice. If accepted, the appeal will give the taxpayer the opportunity to renegotiate their rejected offer on terms more favorable to the IRS.
In the OIC application, wage earners must show their average and regular monthly income for the past 3 months. When you apply, you may show little income in the past 3 months, which could qualify for an ICO (and probably a low bid amount). For your IRS offer to be approved, you must complete the forms correctly and ensure that you provide all the correct supporting documentation. If the Internal Revenue Service requests more information, be sure to provide it within the stipulated deadline.
You must continue to file and pay all your taxes on time for the period indicated in the offer contract, including any collateral agreements signed as part of the accepted offer. Keep in mind that ex parte communications are prohibited by the IRS, which means that an appeals officer cannot discuss their client's case with the offer specialist who rejected it. It is often much easier to get an offer accepted before it is rejected than it is to save it when a rejection letter has already been sent. 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 everything was successfully submitted and your offer is actually being rejected, it's time to take stock of the situation. As a result, if the IRS accepts your offer, the chances of the state accepting a transaction offer increase, but it's not guaranteed. First, you should have received a detailed letter from the IRS offering specialist who was assigned to your IRS transaction offer. We may be able to remove the tax if it was deposited in your account after the IRS received the date of receipt of the transaction offer.
If you can't prove how your income will remain low, you may not qualify for an OCI or you may be faced with an offer that is too high to pay to settle your tax bill. First, I've found that the appeals officer generally has more freedom to reach an agreement on a transaction offer. If you don't qualify for low-income certification or haven't checked the low-income certification box, the offer will be returned to you. We'll review your offer to determine if acceptance is best for New York State and other taxpayers.
Here are some tips on how to write a winning offer and achieve higher acceptance rates in your office.