A: An Offer in Compromise or settlement for less than the amount owed may be your best option if you qualify.
Q: How do I know if I would qualify for an Offer in Compromise?
A: There is a OIC pre-qualifier tool on IRS.GOV.com Website which can help you determine if you may qualify for this form of tax relief. An experienced CPA can help you make this determination since it is a complex process.
Q: How long does the OIC process take?
A: OICs can be completed in as little as 9 months, but some take longer depending on their complexity and IRS case load.
Q: Once my OIC package has been submitted how long before I hear from IRS?
A: Normally you will receive notice with 90 days that your OIC package has been received.
Q: How long before an Offer Specialist is assigned to my OIC?
A: Normally within 6 – 9 months of submitting your offer.
Q: Do I have to send any money with my OIC package?
A: There is a fee of $186 you must include with your offer unless you qualify as a low-income filer then the fee would be waived. In addition, you must include a payment equal to 20% of your total offer with your OIC package.
Q: What are my options for paying the remaining 80% of my offer?
A: This balance can be paid in installments up to 24 months once offer is accepted.
Q: What if my offer is not accepted but rejected?
A: Making settlements for pennies on the dollar is a complex process and is best left to an experienced professional CPA who can rebuttal, negotiate and even appeal your case.
Q: What happens to balances owed to the IRS during the OIC process?
A: Collection action stops and the statute of limitation on balances owed is extended by the time of the process.
Q: What happens to balances owed to the IRS when my offer is accepted?
A: Once your total offer amount is paid in full and processed, your account will show that it is satisfied and IRS liens will be released.
Q: Are there any conditions of my OIC once accepted?
A: Yes, you must file and pay all taxes owed for the next 5 years after acceptance. Any refunds or over payments during this period will not be refunded to you but kept by the IRS as part of this Agreement.
