Appealing a Rejected OIC
There are two routes to take if your Offer in Compromise is refused:
- Call the IRS officer who signed the rejection letter or you can make an appeal.
- A formal appeal is handled by a different division than the one that refused your offer.
A formal appeal is your last resort. You don’t have the right to take the IRS to court for a rejection of your Offer in Compromise. You start the process with a letter formatted by the IRS. Your appeal must be received by the IRS within thirty days of the rejection date. The submission of a new offer earlier than six months from the initial rejection date, without notable changes in your financial situation or without a significant hike in your offer, will not be appreciated by the IRS.
If you want the IRS to take your appeal seriously you must do the following:
- Provide all information asked for by the IRS throughout the processing of your offer.
- All previous tax returns have been filed.
- The present year’s payments and filings are up-to-date.
- Self-employed individuals have completed quarterly anticipated tax payments.
- Employers must be up-to-date with payroll tax filings as well as deposits for the present time and two previous quarters.
An appeal does postpone collection. However, the accrual of interest carries on if a deal isn’t reached.
