Facing IRS Rejection? Here’s How to Appeal
and Overturn with Confidence

Receiving a rejected offer in compromise from the Internal Revenue Service (IRS) can be a frustrating and discouraging experience. However, it’s important to remember that this is not the end of the road. There are several steps you can take to address the IRS offer in compromise rejection and work towards a favorable resolution.

When the IRS rejects your OIC, you will received certified mail from the IRS explaining why. This letter is important because it helps you understand what went wrong. Take the time to read it carefully so you know exactly what you need to fix.

You have 30 days to file an appeal, which gives you a chance to present your case again with better information. It’s important to gather all the necessary documents and address the IRS’s concerns thoroughly. Accuracy and completeness are key to avoiding another rejection.

In the following sections, we’ll guide you through what to do after receiving an Offer in compromise rejection, how to prepare your appeal, and how to improve your chances of success. Let’s work through this together and turn this setback into a step forward.

Understanding IRS Rejection Reasons

The first step in handling a rejected offer in compromise is to understand the reasons behind the decision. The IRS will typically provide you with a detailed explanation of why your offer was rejected. It’s necessary to carefully review this information to identify the specific issues that need to be addressed.

Common reasons for a rejected offer in compromise include:

  • Insufficient financial information or documentation provided
  • Disagreement with the IRS’s assessment of your ability to pay the full amount owed
  • Concerns about your future income and ability to make regular payments
  • Failure to meet the eligibility requirements for an offer in compromise

By understanding the IRS’s concerns, you can better prepare for the next steps in the process.

Documents Needed to Appeal a Rejected Offer in Compromise (OIC)

If your Offer in Compromise (OIC) is rejected by the IRS, you have the option to appeal the decision. Documenting IRS appeals properly is important. To support your appealing IRS decision, you’ll need to provide the following documents:

  • Form 13711: Request for Appeal of Offer in Compromise.
  • Copy of the Rejection Letter: The letter you received from the IRS rejecting your OIC.
  • Detailed Explanation: A written statement explaining why you disagree with the IRS’s decision.
  • Supporting Financial Documents:
    • Recent pay stubs or other proof of income
    • Bank statements for the past few months
    • Proof of expenses (rent/mortgage, utilities, medical bills, etc.)
    • Documentation of assets and liabilities
  • Completed Form 433-A (OIC): Collection Information Statement for Wage Earners and Self-Employed Individuals.
  • Completed Form 433-B (OIC): Collection Information Statement for Businesses (if applicable).
  • Additional Supporting Documents: Any other relevant documentation that supports your case.

The IRS Appeal Process

If your Offer in Compromise (OIC) gets rejected by the IRS, you still have the option of overturning IRS rejection. You can appeal the decision, but you need to act quickly and follow the proper steps.

Receive the Rejection Letter

Before you can appeal, you must have the OIC denial letter from the IRS. This letter will explain why your offer was rejected.

30-Day Window

After receiving the denial letter, you have 30 days to file an IRS offer in compromise appeal. This is a strict deadline, so it’s important to act promptly.

Filing the Appeal with Form 13711

The simplest way to appeal is by filling out and submitting Form 13711. This form is specifically for requesting an appeal of a rejected OIC.

Writing a Formal Letter

Alternatively, you can write a formal letter to the IRS. This letter should include:

  • Your basic details: Name, address, Social Security Number (SSN), and phone number.
  • A brief statement explaining your intent to appeal the rejection.
  • A copy of the rejection letter.
  • The tax periods the OIC would have covered.
  • A list of items you disagree with and your reasons for disagreement.

Tips for a Successful Appeal

If you want a successful appeal, follow the below steps religiously:

Thorough Documentation

Gather additional financial records and any other documentation that supports your case. This might include expert help for IRS appeals or detailed explanations of your financial situation.

Clear and Compelling Argument

Be sure to clearly state why you believe your offer should be accepted. Address the IRS’s reasons for rejection directly and provide counterarguments backed by evidence.

Meet Deadlines

Pay close attention to the 30-day deadline for submitting your appeal. Missing this deadline can result in the rejection becoming final.

By following these steps and preparing for IRS appeal with a strong case, you can increase your chances of having your Offer in Compromise reconsidered and possibly accepted by the IRS.

Exploring Alternative Options

If your appeal is unsuccessful or you decide not to pursue an appeal, there are other options you can explore to address your tax debt.

Installment Agreement

One alternative is to negotiate an installment agreement with the IRS. This allows you to pay off your tax debt over time through a series of manageable monthly payments. The IRS may be more willing to accept an installment agreement if you can demonstrate your ability to make regular, consistent payments.

Currently Not Collectible Status

Another option is to request a “currently not collectible” status from the IRS. This means that the IRS temporarily suspends collection efforts if they determine that you are unable to pay your tax debt due to financial hardship. This can provide you with some breathing room to improve your financial situation before resuming payments.

Bankruptcy

In some cases, bankruptcy may be a viable option for addressing your tax debt. Depending on your specific circumstances, filing for bankruptcy may allow you to discharge or restructure your tax obligations. However, it’s important to carefully consider the long-term implications of this decision and consult with a qualified tax professional or bankruptcy attorney.

Staying Persistent and Proactive

Dealing with a rejected offer in compromise can be a frustrating and challenging process, but it’s important to remain persistent and proactive. Remember that the IRS is ultimately interested in resolving your tax debt in a way that is fair and beneficial for both parties.

By understanding the reasons for the rejection, and exploring alternative options, you can increase your chances of achieving a favorable outcome. Stay focused, be patient, and don’t hesitate to advocate for your rights throughout the process.

A Professional Tax Consultant like Best Tax Pro can assist you in gathering the required documentation, preparing a strong appeal, and negotiating with the IRS on your behalf. They can also provide valuable insights and advice on the best course of action based on your unique financial situation.

Remember, a rejected offer in compromise is not the end of the road. With the right approach and determination, you can find a solution that works for you and the IRS. Stay positive, be proactive, and keep moving forward; the path to resolving IRS tax issues is within reach.

Additionally, if you need tax Audit Help or unfiled taxes help. Best Tax Pro is here to assist you with our years of expertise. We also have Wage Garnishment Attorneys who can assist you in protecting your income and resolving related issues. Get in touch today!

Author

Mr. Joshua A. Webskowski

Joshua specializes in successfully resolving cases in all areas of tax resolution including liens, levies, & other IRS collections cases.

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