There are two types of answers to the question “How long does Offer in Compromise take?”: the short and the real story.
The Short Story
If accepted, your Offer in Compromise (OIC) will take approximately 6 – 8 months.
If rejected, you can appeal the rejection to the office of Appeals, and that will extend the process to around 12 – 24 months.
How Long Does Offer in Compromise Take? – The Real Story
How to start the process and how it makes a difference in terms of how long it takes are other things to worry about in addition to the length of the actual processing.
Read this carefully and take it to heart: you must make sure your ducks are in a row before they start the process because the reset button on your time can be hit any time. And it’s disheartening.
Before you fill out the 656-B, make sure that you file all required tax returns and pay any estimated payments, or the Internal Revenue Service (IRS) will return it and thereby extend the process for you. It’s best to work with the IRS’s Offer in Compromise Pre-Qualifier.
When you’re talking through this with people, they will refer to this process as becoming “processable.” Until you’re identified as such, there will be roadblocks and cold shoulders.
What else should I know?
Make sure to read the terms in all the applications you will be using in the OIC process, especially Section 7 of Form 656.
Make sure to understand the process of OIC by using the IRS.gov website’s webpage; it is a great resource.
Most of the fees are non-refundable, which is another reason to do your homework before you actually start.
Be wary of the quick answers you find on the internet concerning how long the OIC process lasts. If this sounds daunting to you, please seek professional help with us at My Tax Settlement. We take calls from anywhere in the US, and we’ll help you even if you owe as low as 5k.