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  • dave rosa

How Long Does an IRS Offer in Compromise Take?

Updated: Oct 13

FLAT FEE TAX RELIEF

Coast to Coast - IRS Help

Fresh Start Program - Offer in Compromise



How Long Does an IRS Offer In Compromise Take? Can We Speed Up the Process? The simple answer in the "Age of COVID" is "NO ONE KNOWS." In the recent past, a final Offer in Compromise determination was 10 to 12 months. Yes, some IRS settlements would come in at 6 moths, but that isn't not the rule of thumb. Some more complex Offers In Compromise may take up to two years to get resolved. The Offer in Compromise Process. When your Offer in Compromise is ready to be submitted to the IRS, your settlement package is sent to one of two IRS locations. One is in Tennessee and the other is Long island, NY. Just two locations for the entire country.


The job of the IRS at those two locations is to look over the Offer in Compromise. What are they looking for? Well, the IRS is looking for "paperwork problems." Should they find even the slightest error, they will return the Offer in Compromise to the taxpayer and mark it as "unprocessable." No reason for rejection will be given. With this rejection, the taxpayer will have to start all over again. This part of the Offer in Compromise process takes approximately five months. Paperwork issues is the number one cause for rejection.


Once the IRS settlement package gets past this hurdle, the settlement offer is sent to an "Examiner." An Examiner is almost always a lady and they all work from home. They can work as fast or as slow as they want as long as a resolution is arrived at before the two year limit is met. The IRS has two years to arrive with a determination. If they don't, an automatic approval kicks in. For the past 8 years or so, Examiners have been taking approximately five months to approve or disapprove an Offer in Compromise submission. What makes some Offer In Compromises faster than others? These factors make getting an Offer In Compromise much quicker in most cases.

  1. Social Security or Disability Income – If you only get Social Security or Disability as income things seem to go much faster.

  2. Fixed Retirement Income – If you are over 55, retired, and getting a fixed income, your settlement offer will probably process faster.

  3. Low Income W2 Earnings – If your only income is from a wage earning job, and you make less than $30,000 a year, your Offer will also go fast most of the time.

Can I make my Offer In Compromise process move as quickly as possible? The simple answer is "not really." Now there are many things that a novice can can do to slow things down. That is another reason to have an experienced tax professional prepare your Offer in Compromise package.


Although getting an IRS Offer In Compromise can be difficult, it can be done with relative ease. When an Examiner has questions, good responses will be required. If not, just wait and see what happens. It always is an asset to have an experienced tax professional with a lot experience handle your IRS settlement.


Our tax professionals feel that the IRS will be overwhelmed with tax debt to collect due to COVID. With the extra taxpayers with a financial hardship, the IRS will be hard pressed to close case files. A properly prepared Offer in Compromise will close an IRS file.


CURRENTLY THE IRS HAS BEEN APPROVING APPROXIMATEY 42% OF THE OFFER IN COMPROMISE PACKAGES SUBMITTED.


THE TAX PROFESSIONALS AT FLAT FEE TAX RELIEF HAVE A 96% OFFER IN COMPROMISE SUCCESS RATE. FURTHERMORE, WE ACCOMPLISH THIS AT A VERY AFFORDABLE FEE.


OUR TEAMS ARE STRATEGICALLY LOCATED IN CLEARWATER, FLORIDA, AND SAN DIEGO, CALIFORNIA. THIS ALLOWS US TO BE AVAILABLE FROM 8 A.M. EASTERN TO 6 P.M. PACIFIC TIME.



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