Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your commitment offer (OIC). The process can take much longer if you have to challenge the examiner's findings or appeal their decision. In most cases, it takes about six months for the IRS to decide whether to accept or reject your commitment offer. However, if you have to challenge or appeal your decision, the process can take much longer.
There are cases where the IRS doesn't even consider your offer to be compromised. It usually takes an average of six to nine months for the IRS to respond to your offer in the commitment request. Staff, funding and the time of year when the OIC is presented influence the time that elapses in the decision-making process. If it's been more than two months, you should check with the IRS to see how the process is progressing.
It's common for the IRS to take up to six months to make a decision. Some decisions may take more than a year. There are no set deadlines for the time it will take to complete an ICO. The OCI process can take more than a year, but the average is approximately six months.
Many factors contribute to the time it will take for the IRS to approve or reject an ICO. If you owe the IRS taxes that you can't pay in full, you have options available to achieve tax debt relief. During the commitment process, the IRS reviews your financial details to decide whether or not to accept your offer. A 656 form with an application fee and an offer to pay if you are compromising the liability of a company or company.
When taxpayers can't pay their tax bill with their monthly assets and income, they may qualify to receive a commitment offer (OIC). The IRS can also accept an ICO in other circumstances, for example, if there are “doubts about liability”, when paying the full tax bill would create economic difficulties, or when exceptional circumstances would make paying the entire tax bill unfair and unfair. Right now, there are more than 20 million individual and business taxpayers who owe the IRS, but few receive an ICO. From the date the offer is accepted, no additional interest will be added to your tax debt or to the amount of the accepted offer.
The IRS offers installment payment agreements as a solution for taxpayers who cannot pay their tax debts in a lump sum. If your offer is not accepted and you haven't incurred any additional tax debt, your installment payment agreement with the IRS will be reinstated at no additional charge. In the ICO application, wage earners must show their average and regular monthly income for the last 3 months. If the IRS hasn't responded to your offer, you should follow up to ensure that the agency received your request.
Check the state tax page and then follow the link to your state to see if it offers an OIC program. Unfortunately, if you want to request a compromise offer on your state tax bill, you have to do so separately. If you qualify for an ICO, the IRS will then determine how much it will accept from you to pay off the debt.