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How Long Does an IRS Offer In Compromise Take? IRS Tax Attorney Explains

How Long Does an IRS Offer In Compromise Take?

Can Flat Fee Tax Service, Inc. Speed Up Your Offer in Compromise Process?

The simple answer in 2017 is this: an IRS Offer in Compromise will take an average six (6) to twelve (12) months. The first part of your Offer in Compromise process is your Offer in Compromise package is sent to one of the two locations that the IRS has designated for Offer in Compromise processing. One is in Tennessee and the other is on Long Island New York. The IRS will receive approximately 80,000 IRS settlement offers every year. So, Tennessee will get 40,000 and Long Island will get the remaining 40,000. The job of these IRS employees is to look at your Offer in Compromise paperwork and see if you made an error. Did you miss a date? Miss a signature? Any error that the IRS finds will result in rejection. The IRS will return your Offer in Compromise package to you and call it "unprocessable". The IRS will not tell you what you did wrong and you will need to start from the beginning.

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Complex Offers In Compromise may take up to two years to get resolved. Usually these are self-employment cases with a lot of variables. It is very rare in 2017 that they take this long anymore and as of recently the IRS has sped up processing of an Offer In Compromise. Here we will get more into the details on how long an IRS Offer In Compromise will take.

Does the IRS have two years to finish your Offer In Compromise?

The two year rule for IRS Offer In Compromise is this: The IRS has to make a decision within two years, your Offer in Compromise settlement is deemed accepted. In the thousands of cases we have done at Flat Fee Tax Service, Inc., we never have had an Offer accepted in this way. The IRS seems to always respond. However, this is another reason to send your Offer in by Certified mail with return receipt. If you will be the lucky one to win by way of the 2 year no-response rule, better make sure you have proof of mailing it.

IF YOUR IRS SETTLEMENT IS IMPORTANT TO YOU, HAVE AN EXPERIENCED IRS TAX ATTORNEY DO YOUR OFFER IN COMPROMISE. DO IT RIGHT "THE 1ST TIME".

What is Considered a “Decision” by the IRS within two (2) years?

A decision by the IRS would be rejecting the offer, returning the offer as not processable, withdrawing your Offer in Compromise, or a failure to continue to make payments under a periodic payment Offer In Compromise. The IRS taking action on any of these is considered a decision. As long as it is within 2 years of your Offer submission, the IRS won’t automatically grant you a settlement as long as it takes one of these actions.

When you appeal your case from a rejected Offer In Compromise, they do not count this towards the two years.

A Offer in Compromise “Decision” is defined to include the IRS rejecting your offer, returning your IRS settlement as not processable, withdrawal of the offer by you, or a failure to make payments under a periodic payment Offer in Compromise (OIC). If you have had any of these happen, the IRS has acted on your offer and made an decision. Time you spend in appeals from a rejected offer is not counted towards the two year time limit.

What makes some Offer In Compromise settlements take longer than others?

There are a few factors that make your Offer In Compromise take longer than average.

Self Employment – If you have Self Employment income the IRS transfers your Offer to a different area that always takes longer. They look at the case more in depth and also want to make sure you are not mixing business and personal expenses.

High Balance – Offers In Compromise with balances over $25,000 usually take much longer to process. Offers with over $100,000 balances take even longer.

Complex Circumstances – If you have loans all over the place, multiple vehicles, or a bunch of random deposits that need explaining, your Offer is going to take longer than normal.

Initial Rejection – If your Offer is initially rejected, adding an appeal in there could add another six (6) months to the process.

What makes some Offer In Compromises faster than others?

These factors make getting an Offer In Compromise much quicker in most cases.

Social Security or Social Security Disability Income (SSDI) – If you only get Social Security or Disability as income things seem to go much faster.

Fixed Retirement Income – If you are over 55, retired, and getting a fixed income, your Offer will probably process faster.

Low Income W2 Earnings – If your only income is from a wage earning job, and you make less than $30,000 a year, your Offer will also go fast most of the time.

How can I make my Offer In Compromise process as quickly as possible?

The above factors may make your IRS Offer in Compromise process faster or slower, but you can still get your IRS Settlement Offer to go as fast as it can. The two most important ways are as follows:

Complete Information:
Make sure you have all the information the IRS initially requests when you send the Offer. Make sure all the bank statements you submit have all the pages. Even if there is a page that looks useless, if your bank statement pages are numbered, still include it. The agent will ask later, “Where is page 5?” even if it is a blank page. Better to have it be complete and up front.

Good Explanations:
If something in your financials does not look right, provide a good explanation for it in the cover letter. If you have more deposits than you make in income, then explain why you have that extra money. Explain if it is a loan or something else and why it should not be considered as income. If you have any medical conditions, explain them in the cover letter and include supporting documentation.

Accurate Responses:
If the IRS requests further information from you, make sure your response is accurate and timely. An untimely response could result in the IRS rejecting your settlement. Then you either have to start all over again or file an appeal which also takes more time. Submitting inaccurate information also delays the process, as the IRS will ask for further clarification or possibly reject the Offer altogether.

Conclusion:
Although getting an IRS Offer In Compromise approved by the IRS can be difficult, it can be done. How long will your Offer In Compromise take? It depends on the above factors and your responses. Give good responses and you will help speed things up. You might be one of the lucky ones that has their Offer done in a few months.

EXPECT YOUR OFFER IN COMPROMISE TO TAKE 10 TO 12 MONTHS.

If not, just wait and see what happens. Some people, who do their own Offer in Compromise, will call the IRS Taxpayer Advocate over their Offer In Compromise. The IRS, usually, will not help you.

THE BEST IRS HELP TEAM AT FLAT FEE TAX SERVICE, INC. HAS A 95% OFFER IN COMPROMISE SUCCESS RATE.

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If you owe the IRS more than $10,000 to the IRS for an outstanding income tax debt, call our team of experienced IRS Tax Attorneys today? You will receive an free and confidential consultation so that you may come to an informed decision. Get expert help from the best IRS tax attorneys in the country.

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