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Appealing an Offer In Compromise Rejection

Offer In Compromise

Appealing an Offer In Compromise Rejection:

  • Understand the Rejection Letter: Carefully review the rejection letter you receive from the IRS. It should specify the reasons for the rejection, including any errors or missing information in your submission.
  • Consult a Tax Professional: Consider seeking assistance from a tax professional, such as a tax attorney or enrolled agent, who is experienced in IRS matters. They can provide valuable insights and guidance throughout the appeals process.
  • Review Your Eligibility: Ensure that you meet the eligibility criteria for the Offer in Compromise program. The IRS considers factors like your income, expenses, assets, and ability to pay when evaluating offers.
  • Gather Additional Documentation: Address the reasons for rejection by providing any missing or corrected documentation. This may include financial statements, proof of expenses, and any other requested information.
  • Reassess Your Offer Amount: If the rejection was based on the offered amount, you may reconsider your offer. Be prepared to provide a detailed explanation of why your initial offer is justified.
  • Complete Form 13711: Fill out Form 13711, Request for Appeal of Offer in Compromise, accurately and thoroughly. This form initiates the appeals process and should include all relevant information.
  • Submit Your Appeal Package: Send your appeal package, including Form 13711 and supporting documents, to the address specified in your rejection letter. Ensure it reaches the IRS by the specified deadline.
  • Pay the Appeal Fee: If applicable, pay the appeal fee as outlined in your rejection letter. Low-income individuals may qualify for a fee waiver.
  • Prepare for a Hearing: Depending on your case, you may have the option to request an in-person or phone hearing with an IRS appeals officer. Be prepared to present your case persuasively and provide any additional information they request.
  • Await a Decision: The IRS will review your appeal and provide a written decision. This may take several months, so be patient during the process.
  • Comply with the Outcome: If your appeal is successful, follow the revised terms of your Offer in Compromise. If it’s not, explore other options or negotiate further with the IRS.

Appealing an Offer in Compromise rejection can be a complex and time-consuming process, but with careful attention to detail, a thorough understanding of your case, and potentially professional guidance, you can increase your chances of achieving a favorable outcome and settling your tax debt with the IRS.

Frequently Asked Questions

What should I do if my Offer in Compromise (OIC) is rejected by the IRS?
If your OIC is rejected, you have the option to appeal the decision within 30 days from the date of the rejection letter.
How do I initiate the appeal process for my OIC rejection?
To start the appeal process, you should complete and submit IRS Form 13711, Request for Appeal of Offer in Compromise, along with any supporting documentation to the address specified in your rejection letter.
What should be included in my appeal request?
In your appeal request, you should provide a detailed explanation of why you believe the IRS should reconsider your OIC. Include any additional information, facts, or circumstances that support your case.
Can I continue making payments during the appeal process?
Yes, you can continue making any agreed-upon payments or payments under an existing installment agreement while your appeal is pending.
What happens after I submit my appeal request?
After receiving your appeal request, the IRS will review your case. They may schedule an Appeals conference to discuss your case further.
Can I represent myself during the appeal, or should I seek professional assistance?
You have the option to represent yourself during the appeal process. However, it is often advisable to seek professional assistance from a tax attorney, enrolled agent, or tax advisor who is experienced in OIC appeals. They can help present a stronger case on your behalf.
How long does the appeal process typically take?
The length of the appeal process can vary depending on the complexity of your case and the IRS’s caseload. It may take several months or longer for your appeal to be resolved.
What if my appeal is successful?
If your appeal is successful, the IRS will accept your OIC, and you will be required to fulfill the terms of the agreement, including making payments as agreed.
What if my appeal is not successful?
If your appeal is not successful, you may still explore other options, such as revising your OIC with updated financial information, setting up an IRS Installment Agreement, or considering alternative resolution methods.
Can I appeal an appeal decision?
In some cases, if your appeal is unsuccessful, you may be able to file a lawsuit in the U.S. Tax Court to further challenge the IRS’s decision. Consult with a tax professional for guidance in such situations.

Remember that the appeal process is an opportunity to present your case and potentially have your OIC reconsidered. Seek professional assistance if you’re unsure about how to navigate the appeals process effectively or if you believe there are compelling reasons for the IRS to reconsider your offer.

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