IRS Offer In Compromise Appeal

Did the offer in compromise division reject your offer? Did they lose it on grounds that you believe are unfair? Was the offer rejection based on not providing receipts?

Appealing Your Offer In Compromise

Most of the time an offer can be re-filed. This corrects a misunderstanding concerning an incorrect rejection by the IRS offer in compromise division.
When the offer division refuses to accept your receipts or evaluation of assets, etc., then an appeal may be necessary. You have to remember that IRS considers an offer a “favor” to taxpayers, not an “entitlement”. Convincing the offer appeals officer of your way of thinking won’t be easy. You have 30 days from the date of the official rejection letter to file an appeal.

IRS Request For An Appeal Of Offer In Compromise – Form 13711

File this form or a separate letter requesting your appeal. I have had mixed, but mostly positive, experiences with offer appeals. I’ve found that it is best to resolve issues as they come up, so appeals are unnecessary. Different areas have different rules. I’ve found it hard in Houston to appeal non valuation (of assets) issues. In New York they seem to except non valuation (of assets) issues for appeal, and are willing to sway the offer division to their way of thinking.
For more information see IRS Appeals.