The short story If accepted, your commitment offer (OIC) will take approximately 6 to 8 months. If it's rejected, you can appeal the rejection to the Office of Appeals, which will extend the process to about 12 to 24 months. Let's say you're at a point where you don't have more space to discuss at the supply specialist level. It's officially time to file that appeal and have your offer reconsidered.
Processing times vary, but you can expect it to take at least six months for the IRS to decide whether to accept or decline your commitment offer (OIC). The process can take much longer if you have to challenge the examiner's findings or appeal their decision. Finally, the examiner will accept or reject the proposed quantity. If your commitment offer is accepted, the process will likely have taken 6 to 8 months.
If your commitment offer is rejected, you can appeal the rejection to the IRS appeals office, which would likely extend the entire processing time of the commitment offer to about 14 to 24 months. The answer is six to twelve months, on average, although it may be longer, depending on the complexity of the case. If an appeal is necessary, add another six months. In most cases, it takes about six months for the IRS to decide whether to accept or decline your commitment offer.
However, if you have to challenge or appeal your decision, the process can take much longer. There are cases where the IRS doesn't even consider your offer as a compromise. As a reminder to the reader, an IRS commitment offer (OIC) is a tax agreement with the IRS in which the taxpayer agrees to pay a specific amount and the IRS agrees to commit the remaining liability. You want a tax professional who has experience and knowledge about this area of tax law and who truly understands your OIC requirements.
The most important tips for a successful OIC are to pay the amount of the offer; file all tax returns on time; allow the IRS to keep all the tax refunds, payments, and credits to reduce your tax liability to reduce your tax liability; and continue to allow the IRS to keep all the tax refunds owed to it even after the OIC has been approved. The IRS commitment offer (OIC) is one of the easiest ways for taxpayers to settle their outstanding tax obligations, but that doesn't mean everyone can meet the requirements.