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 substantial and there is no guarantee that the IRS will accept the ICO. 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. Finally, the examiner will accept or reject the proposed quantity. If your commitment offer is accepted, the process probably took 6 to 8 months. If your compromise offer is rejected, you can appeal the rejection to the IRS appeals office, which would likely extend the entire time of processing the pledge offer to about 14 to 24 months.
Usually, an offer in a commitment decision can take 9-12 months. But these are not typical times. 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 compromise offer process is a way to pay less tax debts than you owe. The free Wiztax online system guides you through the committed offer process and provides you with useful tips and advice every step of the way. Start by answering simple tax questions.
Wiztax then calculates the settlement amount of your offer on terms of commitment and fills out all the IRS OIC 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 pledged offer process, and review all IRS OIC forms before filing them. We know what questions to ask so that the IRS obtains the most complete and accurate information needed to make a decision about your pledged offer. You can rest easy knowing that all your questions, from the simplest to the most complex, will be answered.
It usually takes an average of six to nine months for the IRS to respond to your offer in a pledge request. Staff, funding and the time of year when the OCI is presented influence the time spent in the decision-making process. If more than two months have passed, 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. If you show the IRS that you have the ability to pay the offer on terms of commitment, you may be well on your way to becoming free of tax debts. As part of the accepted offer agreement, the IRS will keep any refund, including interest, of taxes due until the date the IRS accepts the offer. The IRS offers installment payment agreements as a solution for taxpayers who cannot pay their tax debts in a lump sum.
Generally, the IRS will only reduce your tax debt owed if it convinces the agency that your offer is the best they are likely to receive. If the IRS believes that you can pay the tax bill in full or by making monthly payments, the agency will not approve your offer. The IRS commitment offer program is very popular because it allows you to pay your IRS tax debt for less than you owe. If you contact a tax debt resolution company and they tell you that you can get an offer approved without analyzing your situation, you shouldn't work with that company.
When an offer is not met, the IRS can request or file a lawsuit to collect the full balance of the offer or an amount equal to the original tax debt minus any payments received under the terms of the offer. You can designate in writing what tax debt you would like to apply your offer payments to when the offer is presented or when the payment is made. In fact, the IRS only accepts these offers if it believes that the taxpayer cannot pay the tax liability in full or through a monthly payment plan. The IRS can stop paying the offer and reinstate all of the tax liability, minus all payments and credits received.
The engagement process is quite complex and a tax professional providing ICO tax services can significantly increase your chances of having your offer accepted. You answer simple tax questions, then Wiztax calculates the settlement amount of your offer under terms of commitment and fills out all the IRS pledge offer forms that you will need to submit. 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. .