The offer in compromise (or OIC) has one of the highest rates of rejection; back in 2016, the IRS rejected 57.14 percent of offer in compromise requests. Because of this fact, the mere idea of requesting an offer in compromise may feel like a discouraging and fruitless pursuit. However, having an OIC be accepted is possible if you know what steps to take – and when an OIC is the most suitable solution.
An offer in compromise allows an individual the chance to pay off back taxes at an amount totaling less than what they originally owed. This choice is typically reserved for those who cannot pay off the original sum without risking economic hardship. However, proving your inability to pay the original amount can be extremely difficult. The best route to a successful offer in compromise request involves working with a tax expert who can guide you through the overall process.
There are many reasons why the IRS may reject an OIC request. The first thing you should do is figure out why the rejection occurred. Some specific reasons include:
Once you have figured out the reasoning behind the rejection, you can move forward with the help of an offer in compromise professional. Together you can work to appeal the rejected offer in compromise.
You should act as soon as you’ve been notified of your offer in compromise rejection. The window to appeal is small; the IRS requires individuals to appeal within 30 days. The IRS also offers its own tool to assist taypayers in deciding whether or not to appeal. However, seeking the services of an OIC professional is often the better option; they not only can help you to learn whether you should appeal, but also assist you in navigating how to submit your appeal.
Our team at Rocket Tax Relief has the expertise and tools needed to aid you in this process. Give us a call at 800-542-4718 or fill out our online form to get in touch with us. We’ll get in touch with you as soon as possible. We also provide 15-minute tax consultations at no cost.