Can you appeal an Offer in Compromise rejection?
Believe it or not, the Internal Revenue Service does not have to accept your Offer In Compromise (OIC). In fact, it is common for OICs to be rejected. The Internal Revenue Service only accepts roughly 10-15% of OICs that are submitted. This doesn’t mean that you should not consider this tax settlement method but just understand that the odds are are not in your favor.
If your Offer In Compromise is not approved, you should consider appealing it. This is something that many people don’t realize is possible, but it can help you get what you want – with just a little more work. Understand that you typically have 30 days from the date on the reject letter to appeal it.
To start, you would need to fill out IRS Form 13711 – Request for an Appeal of Offer in Compromise. This will get the ball rolling by showing the Internal Revenue Service that you believe your offer was unfairly rejected. Even though you have to put a lot of work into the appeals process, it can really payoff in the end if the Internal Revenue Service decides to side with you and eventually accept your offer. You can also send a letter requesting an appeal. This is a great idea if you have a good reason for your appeal and want to show it to the Internal Revenue Service in your own words. Remember you r appeals letter does not have to be perfect; you just need to clearly get your point across.
The most common reasons for the rejection of an OIC is that it does not meet the criteria set forth by the Internal Revenue Service , or offer amount that you have submitted is too low or unreasonable when compared to the Reasonable Collection Potential set forth by the Internal Revenue Service for you.
If you meet the qualifications set form by the Internal Revenue Service (Doubt as to Collectibility, Doubt As to Liability, or Effective Tax Administration ( severe hardship or financial crisis you are in ) you will have a good chance of getting your offer accepted. If you have proof, and your offer is not approved, you will then want to continue forth with the appeals process detailing to the Internal Revenue Service what you disagree with. For anything you disagree with, make sure you have supporting documentation and facts to back up your claims.
Was your Offer In Compromise rejected by the Internal Revenue Service? If so you should feel comfortable appealing the decision. Every taxpayer has the right to appeal decisions by the Internal Revenue Service that you might consider unfair.
Do not forget, an Offer in Compromise is not the only way to square away back tax debt. You can arrange payment installment plans, deferments, claim hardship or even if you can, pay all of your back taxes in full! The Internal Revenue Service needs their money, but they are willing to work with those who are having problems.
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