Dealing with the Internal Revenue Service can be like piecing together a puzzle: if you don’t have all the pieces, you will never see the full picture. All of the red tape involved can have you tangled up in a web of confusion and frustration. Due diligence is necessary from the start when working to resolve issues concerning the IRS.
When you find yourself in a position in which the IRS is seeking to collect a debt, don’t panic. Instead, dig your heels in and learn all of the facts surrounding your current situation and all of the options available to you. Understanding what an offer in compromise is will help you determine the answer to the question of how long an offer in compromise takes.
The offer in compromise (OIC) program is offered by the Internal Revenue Service (IRS) as part of its Fresh Start initiative. The OIC is a contractual arrangement between the taxpayer and the IRS that allows the taxpayer to settle assessed tax liabilities, plus any interest or penalties, for less than the amount of the debt owed. The OIC program has strict requirements that must be met by taxpayers for them to take advantage of the program.
OIC requirements include, but are not limited to, the following:
Patience is vital when applying for an OIC. We exist in a society driven by instant gratification, but the IRS does not share in that lifestyle. Learning to be patient when the IRS is involved can be essential to helping you achieve the desired results.
No set timelines exist for how long completing an OIC will take. The OIC process can take longer than a year, but the average is roughly six months. Many factors contribute to how much time will be necessary for the IRS to approve or reject an OIC.
Factors that could potentially speed up the OIC process include the following:
Factors that could potentially slow down the OIC process include the following:
To increase your chances of having the process be as efficient as possible, you need to ensure that you provide information that is complete, up-to-date, and relevant. Send all documentation that is requested and leave nothing out, even if it seems insignificant. Also, include explanations of anything that may be construed as deceitful on your part, even if you’ve done nothing wrong. If the IRS sends a request for more information, as it usually does, be sure to provide accurate information and do so promptly.
If your OIC is rejected, you have the option of starting the process over or the ability to file an appeal. Either way, you will only be adding to the time that it will take to bring the process to a conclusion. Though it is difficult to get an OIC approved, it can be done. If your OIC is accepted, you have to hold up your end of the agreement by remaining in compliance with all of the requirements outlined in the OIC.
Dealing with IRS issues can be a bit intimidating. Here at Solvable, we strive to provide you with the knowledge and the resources to help you in your tax debt relief efforts. We provide digital platforms that are built to support you in finding the debt relief companies best suited for your needs. Though we offer assistance with many types of debt, tax debt is one of our specialties, and we have confidence that we can pair you with the tax services you require.
When having trouble with the IRS, the best defense is a good offense. Don’t just wait on them; be prepared by being in the know. Do your research and get connected with people who have your best interests in mind so you can rest easy knowing that your tax debts are being resolved in a professional and timely manner.