If your Offer in Compromise was rejected, all is not lost, you have options. We are former IRS agents, managers and instructors.

We know all the procedures. I am a former IRS teaching instructor of the Offer in Compromise.

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The IRS has rejected your Offer in Compromise as to Collectibility, what can I do?

If you submit an Offer in Compromise as to Collectibility and the IRS rejects it, all is not lost!

If the IRS (Collection Division) rejects your Offer in Compromise, ask them why it was rejected.

If the Offer in Compromise was rejected because you have not filed all of your tax returns, ask what years need to be filed and then request additional time to file the tax returns.

If the Offer in Compromise was rejected because of additional information that the IRS wants, provide that information to the IRS.

Don’t ignore the IRS. If you need more time to obtain the information, inform the IRS that you are in the process of obtaining the information, but you need more time.

If the Offer in Compromise was rejected because the amount offered was not adequate, ask that the IRS provide you the amount of an acceptable offer and how it was computed.

Review the computations. If you agree with the computations, inform the IRS that you will be immediately submitting an “Amended Offer” for the higher amount as computed by the IRS.

If you do not agree with the IRS’s computation of an acceptable offer, file an appeal for the rejected offer.

In the appeal explain the part of the IRS’s computation of the acceptable offer that you do not agree with. If there is a dispute as to the value of assets, provide the current appraisals with the protest. If income or expenses are in dispute, provide documentation for what you believe are the correct amounts.

When the case is in Appeals, your case will be reviewed by an Appeals Officer or a Settlement Officer. If he or she requests additional information, provide it. Explain your situation. Don’ t tell him that you don’t have the funds for the offer; the Appeals Officer or the Settlement Officer already knows that.

Most of the times, you have to fund your offer from loans from relatives; or make monthly payments from your current income.

When the Appeals Officer or Settlement Officer has computed what he believes is an acceptable offer, review the computations.

If you agree with the amount of the acceptable offer, the Appeals Officer or the Settlement Officer will request that you submit an “Amended Offer” that he or she will process.

If the amount of the unpaid liability exceeds $50,000.00, Area Counsel will have to concur with the amount that “Amended Offer.”

If you don’t agree with the amount of the acceptable offer as computed by the Appeals Officer or the Settlement Officer, their is no further appeals other than by requesting “Post Appeals Mediation” in a few selected Appeals Offices through out the nation.

Thus, you should not be too quick not to reject the Appeals Officer or the Settlement Officer’s computation of an acceptable offer.

For example, your unpaid tax liability is $780,000.00; you offered $35,000.00; but the Appeals Officer or the Settlement Officer computed the acceptable offer in the amount of $100,000.00.

The Appeals Officer or the Settlement Officer wants an additional $65,000.00 for an acceptable offer; but you should not lose sight of the fact that by paying $100,000.00 your unpaid tax liability of $780,000.00 would be forgiven by the IRS for a payment of $100,000.00.

Let us at Fresh Start Tax review your case. Our experienced staff of former IRS Examiners and Appeals Officers will evaluate your offer and determine how far to pursue it.

Call us 1-866-700-1040

Offer in Compromise Rejected?  File OIC Appeal,   Former IRS Agent Instructors, Managers