Appealing a Rejected Offer in Compromise

Filling Out IRS Form 13711 to Appeal a Rejected Offer in Compromise

Offer in compromise rejection is frustrating, but it’s also the rule more than the exception. In any given year, the IRS turns down over half of all offers. For many taxpayers, the quest to obtain an OIC ends there. Others, however, aren’t as willing to give up.

Thankfully, it’s possible to appeal a rejected offer in compromise, as we discuss below:

What Is IRS Form 13711?

Officially known as the Request for Appeal of Offer in Compromise, IRS Form 13711 highlights your disagreements with your OIC rejection. This dispute may involve either the Income and Expense table or the Assets and Equity table received alongside the rejection letter.

Steps to Complete IRS Form 13711

Before proceeding with an OIC appeal, take a close look at correspondence with the IRS to determine whether the offer was rejected or returned. The appeals process is reserved for rejected offers.

From there, it’s important to pay close attention to deadlines, as appeals sent more than 30 days after receiving the initial rejection are unlikely to be accepted.

Next, identify areas of disagreement involving the Income and Expense or Assets and Equity tables. Each disagreed entry should be accompanied by a brief statement concerning the reason behind the dispute.

When possible, supporting documents should be attached to substantiate these claims. Additional explanations may be needed for disagreements related to Effective Tax Administration (ETA) or economic hardship.

Because the stakes are so high with offer in compromise appeals, it’s worthwhile to complete IRS Form 13711 under the guidance of a tax professional. This will increase the likelihood of the rejected OIC ultimately being overturned.

Was your offer in compromise rejected? Or do you want to make every effort to avoid rejection in the first place58? Either way, you can count on the Highland Tax Group for help. Reach out today to learn more about our work with offers in compromise.