The IRS approving the Currently Not Collectible status postpones the collection of payment and at the same time does not bar the taxpayer from requesting an Offer in Compromise. 5. Request an Appeal with the IRS

Why was my offer rejected by the IRS?

One reason your Offer may be rejected is because the IRS is under the assumption that you can, in fact, pay the full amount from your future income. And they define your future income as the amount you earn, minus the necessary living expenses. Sounds simple enough right? Okay but what about when it isn’t so simple.

How can I get the IRS to accept my offer?

The IRS actually declares they can start accepting offers, but taxpayers can also ask their local IRS branch office for a possible earlier negotiation. Prove that financial difficulties will arise if the IRS honors the original tax debt. Staying on top of tax responsibilities by prioritizing the IRS.

What can I do with a rejected OIC from the IRS?

A rejected OIC can still technically be saved through filing an IRS appeal. On the other hand, a returned OIC can simply be resubmitted. The taxpayer applied for other remedies, like a bankruptcy proceeding

How to appeal your rejected offer in compromise ( OIC )?

If you don’t have your Form 433-A, IET Worksheet or AET Worksheet, contact the person identified on the rejection letter for these documents. In considering your reasons for disagreement, make sure you address each of the reasons that apply.

What happens if you default on an offer in compromise?

When an offer defaults, the IRS may levy or file suit to collect the entire balance of the offer or an amount equal to the original tax debt less any payment(s) received under the terms of the offer. All penalties and interest will be reinstated. Liens and levies may be placed on the account.