How to Get an IRS Quick Decision for Your Offer in Compromise, in an Emergency Situation.
The normal processing time for an Offer in Compromise is 6-9, or more, months to process, investigate and get managerial approval of an Offer in Compromise. If you have an emergency situation, you can convince the IRS to speed up its investigation of an Offer in Compromise.
Buried in the IRS internal guidelines is Internal Revenue Manual 5.8.4.27, which provides for the expedited handling of an Offer in Compromise.
When submitting the Offer in Compromise, it is important to make sure the IRS knows you have an emergency requiring a quick compromise investigation. To do this, on the top of your Form 656, Offer in Compromise, write in bold, all cap letters: EMERGENCY PROCESSING REQUESTED.
If you have already submitted the Offer but did not make the expedited request, we would need to track down the Offer in the IRS centralized compromise processing system and submit the request. The IRS Taxpayer Advocate can also be used to help find the Offer and get it on a fast track. If an Offer Examiner is already working your case, the request for expedited processing can still be made directly to the investigator.
You MUST demonstrate to the IRS the reasons why the normal compromise processing times would be detrimental to both you and the government. It must be made clear to the IRS that the normal processing time will hurt their chances of getting paid from the Offer.
To convince the IRS to shorten the usual compromise investigation time, a statement should accompany the Offer in Compromise detailing the basis for the emergency processing request. Be very specific with your facts and attach any documentation that backs up the statement. The key to getting the IRS to move quickly is demonstrating how your time constraints will impact payment to the IRS. NOTE: Make sure your case warrants emergency processing, or you could find yourself at the back of the line.
Here are some examples of what the IRS considers a basis for a quick Offer in Compromise investigation:
- A contract or business agreement requires you to resolve your tax debt by a specific date.
- The money you are offering to pay the IRS in settlement is available for a limited time.
- Illness may affect your ability to complete payment terms.
Should you get help?
I have seen many people try to prepare their own OIC and fail because they do not fully understand the art of dealing with the IRS. Yes, you can submit an Offer in Compromise yourself but if you are trying to considerably reduce your debt, I recommend you rethink your position.
An “accepted” OIC is not the same as a “successful” OIC.
There is more to it. Sure, the average taxpayer can fill out the forms and after spending hours reading and rereading the instructions provide the substantiation needed for an application to be accepted. How do you measure success? To me, success is measured with an approval on the LOWEST DOLLAR AMOUNT the IRS will accept
If you feel that you may be in over your head, or just want to get a second opinion, let’s set up a short call. To avoid the back and forth emails and phone tag, I have included a link to my Calendar https://calendly.com/taxman/tax-problem-resolution-initial-consultation. Let’s set up a 30 min. phone conference to get to know each other. The phone number to call is 855-829-5877 and my extension is 203.