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Exceptional circumstances exist, such as the collection of the tax would create an economic hardship, or there is compelling public policy or equity considerations that provide sufficient basis for compromise.
The average amount of an IRS settlement in an offer in compromise is $6,629.
Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC). The process can take much longer if you have to dispute the examiners findings or appeal their decision.
In most cases, the IRS wont accept an OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayers ability to pay.
A bankruptcy filing, failure to include the entire application fee, missing information, additional liabilities being accrued while the offer is being considered, and many other things may all cause your offer in compromise to be returned.
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Have filed all tax returns; Have received a bill for at least one tax debt included on their offer; Make all required estimated tax payments for the current year; and. Make all required federal tax deposits for the current quarter (if they are a business owner with employees).
In most cases, the IRS takes about six months to decide whether to accept or reject your offer in compromise. However, if you have to dispute or appeal their decision, the process can take much longer. There are cases when the IRS wont even look at your offer in compromise.
Youre eligible to apply for an Offer in Compromise if you: Filed all required tax returns and made all required estimated payments. Arent in an open bankruptcy proceeding. Have a valid extension for a current year return (if applying for the current year)
But statistically, the odds of getting an IRS offer in compromise are pretty low. In fact, the IRS accepted only 15,154 offers out of 49,285 in 2021.Find a tax relief company thats best for you Free initial consultation. $295 investigation fees. Average resolution fees run from $3,000 to $5,500.
Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC). The process can take much longer if you have to dispute the examiners findings or appeal their decision.

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