Most ICOs take 7 to 12 months to complete, meaning taxpayers would send 7 to 12 monthly payments to the IRS. These payments can be significant and there is no guarantee that the IRS will accept the OCI. The offer process in the process of commitment can be lengthy. Keep a close record of the dates: If the IRS doesn't reject, return, or withdraw your offer within two years of the date the IRS receives it, the offer will be considered accepted.
Processing times vary, but you can expect it to take at least six months for the IRS to decide whether to accept or reject your compromise offer (OIC). The process can take much longer if you have to challenge the examiner's findings or appeal your decision. If you owe back taxes to the IRS or have a major bill you can't pay, you have options. The IRS isn't going anywhere, but if you work with them, they can help you resolve your tax debt.
One such way to resolve back taxes is the compromise offer. The commitment offer process is a way to pay less tax debt than you owe. Wiztax's free online system guides you through the pledge offer process and provides you with helpful tips and suggestions at every step of the process. Start by answering simple questions about taxes.
Wiztax then calculates the settlement amount for your pledge offer and completes all the IRS forms for you. Our Wiztax experts have decades of experience in tax law and the IRS, and are always available to answer tax questions, help with the pledge offer process, and review all IRS OIC forms before filing them. We know what questions to ask so that the IRS receives the most complete and accurate information needed to make a decision about your compromise offer. You can rest easy knowing that all your questions, from the simplest to the most complex, will be answered.
It usually takes six to nine months for the IRS to respond to your offer in a commitment request. Staff, funding and the time of year when the OIC is presented influence the time needed for the decision-making process. If more than two months have passed, you should check with the IRS to see how the process progresses. It's common for the IRS to take up to six months to make a decision.
Some decisions may take longer than a year. Gartzman Law Firm Offers Tax Settlement Help for Federal and State Tax Debt, Including Commitment Offers. 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. To do this, you must fill out the IRS forms correctly and provide the agency with the information it needs to make a decision.
If the IRS doesn't respond to you within two years of receiving your request, your offer is automatically approved. You will receive correspondence and can contact the offer examiner or the specialist assigned to you. Begin the process of evaluating your situation, your ability to pay and the amount you offer. In addition, the IRS must also believe that the offer is equal to or greater than the amount the agency could expect to collect based on the taxpayer's current monthly income, future income, assets and expenses.
LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. A copy of the acceptance letter is in the offer case file, which has been sent to the Federal Records Center. However, the IRS will release the tax lien 30 days after the payment terms are met and the payment is verified. Check the state taxes page and then follow the link to your state to see if it offers an OIC program.
Another reason the IRS may accept payment of an amount less than the full amount you owe is the doubt as to liability (that is, you don't think you owe the tax or don't think the amount is correct). We can offer you help if your tax problem is causing you financial difficulties, if you've tried and haven't been able to resolve your problem with the IRS, or if you think an IRS system, process, or procedure simply isn't working as it should. The IRS should explain how it calculates your capacity to pay and how much it could charge you. These forms can help you calculate how much you should offer based on the capital of your assets, your monthly disposable income, and your future income potential.