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What Percentage of IRS Offer in Compromise are Accepted?

Updated: Oct 13

FLAT FEE TAX RELIEF

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Offer in Compromise - Fresh Start Program

What Percentage of Offer in Compromise Are Accepted by the IRS? Not everyone who requests an Offer in Compromise from the IRS will receive one. Here are the numbers. In 2017, the IRS received 62,000 offers in compromise and accepted only 25,000 of them — that's a success rate of roughly 40%. The criteria for qualifying are a financial formula and document intensive. THE IRS TAX ATTORNEY AT FLAT FEE TAX RELIEF HAVE A 96% OFFER IN COMPROMISE SUCCESS RATE. OUR RECORD COVERS MORE THAN A DECADE.


HOW MUCH WILL THE IRS SETTLE FOR? The average amount the IRS will settle for in an Offer in Compromise is $6,629. This doesn't mean that all Offer in Compromise submissions are settled for the above amount. The tax professionals has settled many of our Offer in Compromise submissions for $100 to $500. It all depends on financial situation of each individual taxpayer. How Long Does It Take for An Offer in Compromise to be Accepted? From "beginning to end," an Offer in Compromise (OIC) may vary, but at the present time an IRS settlement will take approximately 10 to 12 months. The IRS used to take about six months to decide whether to accept or reject your Offer in Compromise but that hasn't been true for 6 or 7 years. How Much Does IRS Offer in Compromise? On March 12, 2020, final regulations were released that increased the user fee to submit an offer in compromise (OIC) from $186 to $205 (effective for OIC applications submitted after 4/27/2020). While a 10% increase may seem like a lot, it's only a small part of the potential cost of an OIC. As far as what the cost of having a experienced OIC representation goes, fees are varied. Most tax resolution companies will charge between $3,000 (on the low end) to $6,000.


Flat Fee Tax Relief charges $2,050 for an Offer in Compromise and that includes having an IRS levy stopped and released. Also, we break down our fee this way: $250 is the initial fee followed by 10 monthly installments of $180 for a total of $2,050. Does an Offer in Compromise Affect My Credit? An Offer in Compromise has no affect on your credit. It will not show up on your credit as a settlement. As far as tax liens are concerned, for the past several years Credit Bureaus have not listed tax liens on credit profiles . Can I Do My Own Offer in Compromise?


Yes, you can. In fact, the IRS prefers that you do your own OIC. Why? The IRS rejects most of the Offer in Compromise submissions due to "paper-work" issues. The IRS nit-picks all settlement offers. The Agency will look for "i's" not dotted and "t's" not crossed. If the Agency finds one trivial error, they will reject your OIC in a "heartbeat." If you want to have the best results, have an experienced tax professional who has a proven track record handle your OIC.


This article has been provided by the tax pros at Flat Fee Tax Relief. WE are strategically located in Clearwater, Florida, and San Diego, California. This allows our teams to be available from 8 A.M. Eastern to 6 P.M. Pacific time.

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