Don’t
treat a letter of rejection for an offer-in-compromise
(OIC) as the end of your world. Like any lower-court verdict, you can appeal
the rejection with the help of your trusted attorney. Remember that the IRS can
grant you an OIC on one of three reasonable grounds:
·
The
IRS can’t determine the exact amount you owe.
·
Your
income and assets aren’t enough to pay the exact amount.
·
Paying
the exact amount will lead to economic hardship.
Of all the
OIC requests the IRS receives, it’s estimated that only a quarter are granted. You
need to increase your odds of OIC approval by making sure your economic
situation fits at least one of the three aforementioned grounds. Before you
start writing the IRS a letter though, you must confirm the following as well:
·
You
received the rejection letter.
·
You’re
a W-2 employee (working for an employer).
·
You
don’t own any rental property.
·
You’re
not operating an independent business.
There are
two ways to appeal an OIC rejection. First is completing Form 13711, the
Request for Appeal of Offer in Compromise, and Form 2848, Power of Attorney and
Declaration. The latter means you plan on having someone represent you in your
appeal, specifically your professional tax attorney. Send the documents to the
address stated in the rejection letter. As long as you have a knowledgeable
attorney at your side, your chances of approval are higher as you avoid errors
in processing your OIC documents and settlements.
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