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. In most cases, it takes about six months for the IRS to decide whether to accept or reject your transaction offer. However, if you have to challenge or appeal your decision, the process may take much longer.
There are cases where the IRS doesn't even consider your offer as a transaction. There are no set deadlines for determining how long it will take to complete an OCI. The OCI process can take more than a year, but the average is approximately six months. Many factors contribute to the amount of time the IRS will need to approve or reject an OCI.
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. The OIC process is a complicated and slow process. The OIC process usually takes 6 months, but may take a year or more, depending on several factors. The IRS has the final word on an OCI, although it has guidelines, rules and protocols that you must follow.
That's why most ICOs filed by taxpayers are rejected without the help of a tax professional. The IRS Offer in Compromise (OIC) program was established by Congress to help taxpayers who have experienced significant financial problems to give them a fresh start. The OIC program has strict requirements that taxpayers must meet in order to take advantage of the program. The Pledge Offer Program (OIC) is offered by the Internal Revenue Service (IRS) as part of its Fresh Start initiative.