How Much Time Needed to Obtain a Decision from the IRS After Making a Compromise Offer?
Do you intend to offer for a compromise settlement with IRS? Often taxpayers may consider submitting a compromise offer to settle their tax debt for less than the full amount owed while negotiating with the IRS.
However, the process of obtaining a decision from the IRS while negotiating payments with the IRS on a compromise offer can take several months, and in some cases, even years.
The timeline for a decision on a compromise offer varies depending on the complexity of the case and the workload of the IRS. Once a compromise offer is submitted, the IRS will conduct a thorough review of the financial situation of the taxpayer to determine if they are eligible for the program.
This review can take several months, and the taxpayer may be required to provide additional documentation to support their offer.
After the initial review, the IRS may request further information or make a counteroffer. This back-and-forth process can continue for several months until a final decision is reached. If the offer is accepted, the taxpayer will typically have 5 to 24 months to pay the agreed-upon amount.
It is important to note that submitting a compromise offer does not stop the IRS from pursuing collection action. Taxpayers should continue to make payments on their tax debt while their offer is being reviewed.
Additionally, the IRS may still file a lien or levy against the assets of the taxpayer while the offer is under consideration.
In summary, negotiating payments with the IRS through a compromise offer can usually be a lengthy process. Taxpayers should be prepared to wait several months for a decision and continue making payments on their tax debt in the meantime.
It is also recommended to work with a tax professional who has experience with the offer in compromise program to ensure the best possible outcome.