Sage-Tips

How long does it take to get a decision on an offer in compromise?

In most cases, the IRS takes about six months to decide whether to accept or reject your offer in compromise. However, if you have to dispute or appeal their decision, the process can take much longer.

How long does it take the IRS to review an offer in compromise?

Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC). The process can take much longer if you have to dispute the examiner’s findings or appeal their decision.

How do you get approved for an offer in compromise?

When it comes to specific eligibility requirements, the taxpayer must: Have filed all tax returns; Have received a bill for at least one tax debt included on their offer; Make all required estimated tax payments for the current year; and.

How often is an offer in compromise accepted?

OIC-DATC acceptance rates In general, IRS OIC acceptance rate is fairly low. In 2019, only 1 out of 3 were accepted by the IRS. In 2019, the IRS accepted 33\% of all OICs.

Does an IRS offer in compromise hurt your credit?

Improved credit score – after an offer in compromise is complete, the IRS will release all tax liens filed against you. IRS collections are put on hold while the compromise is investigated.

What percentage of offer in compromise are accepted?

According to statistics in the IRS Data Book for 2017, the IRS received 62,000 offers in compromise and accepted 25,000 that year; approximately 42 percent. Most taxpayers who submit offers in compromise have at least several thousand dollars in owed back taxes.

What are the chances of getting an offer in compromise?

Not everyone who asks for an offer in compromise from the IRS will get one. In fact, your chances might be slim. In 2017, the IRS received 62,000 offers in compromise and accepted only 25,000 of them — that’s a success rate of roughly 40\%. The criteria for qualifying are strict.

Can you make payments on an offer in compromise?

Application fee and initial payments While filling out your offer in compromise, you can choose from two payment options. Lump sum — Include at least 20\% of your offer upfront and then pay the remaining balance in five or fewer payments within five months of the date the IRS accepts the offer.