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The IRS does not have a set percentage of settlement to the amount owed. It all depends on convincing the IRS that your financial situation is dismal and that the IRS will never get paid after applying their internal guidelines. Planning for an offer in compromise during the COVID-19 pandemic?
an acceptance rate of about 24 percent. However, the study also found that the noncompliance rate of BMF taxpayers with an accepted OIC is generally less than the noncompliance rate for businesses unable to obtain an accepted OIC.
As soon as the OIC and related fees and payments are served on the IRS, the Department must stop all collection efforts for as long as the offer is pending (often several months).
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).
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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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.
The 20 percent payment is generally nonrefundable, meaning it wont be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. Instead, the 20 percent payment will be applied to the taxpayers tax liability.
You must provide a written statement explaining why the tax debt or portion of the tax debt is incorrect. In addition, you must provide supporting documentation or evidence that will help the IRS identify the reason(s) you doubt the accuracy of the tax debt.

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