What’s a Typical Timeline for an IRS Offer in Compromise? Is There Any Way to Make the Process Go Faster?

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Once the hard work of applying for your offer in compromise is complete, the waiting game begins. This can be nerve-wracking even when you’re confident that you’ve done everything right.

Meanwhile, you may need to continue making payments, either as part of your installment or based on your offer. To help with planning, we’ve highlighted a few basics regarding timing for the OIC program.

The ‘Typical’ Timeline

Offer in compromise timing varies dramatically from one person to the next. In general, however, most people can expect a response from the IRS within six months of submitting an application. This includes a period known as ‘pending,’ which begins as soon as an IRS official signs Form 656. This period can continue up to 30 days after an offer’s rejection.

What About Appeals?

If your initial OIC application is rejected, you may opt to appeal your case. This could result in a reversal of the original decision, and with it, the tax relief you need. Unfortunately, the appeals process can be frustratingly cumbersome, even as compared to initial OIC applications. Depending on your situation, appeals could extend the timeline to well over a year, with some cases taking as long as two years to resolve.

Your best bet for accelerating the OIC process? Making sure that every detail is correct. Even small issues could lead to delays or rejection. If possible, seek guidance from a tax resolution service, which can streamline your application and help you avoid appeals.

If you’d like to expedite the process of securing an offer in compromise from the IRS, look to the team at Highland Tax Group for assistance. Contact us today to learn more about our tax resolution services.