If the IRS rejects your offer in compromise (OIC), don’t lose hope. You have the right to appeal the decision within 30 days from the date on the rejection letter. This guide will walk you through the steps to request an appeal, decide if you should appeal, and gather the necessary documents. Let’s dive in!

Understanding the Appeal Process

When the IRS rejects your OIC, you have 30 days to file an appeal. To do this, you need to submit Form 13711, Request for Appeal of Offer in Compromise, or send a letter to the IRS detailing your situation. Be sure to mail your appeal request to the office that issued your rejection letter.

Should You Submit an Appeal?

Before deciding to appeal, it’s crucial to review the reasons for the rejection. The IRS will provide Income/Expense and Asset/Equity Tables along with Form 656, Offer in Compromise. These documents will help you identify areas of disagreement.

Documents to Gather for Your Appeal

Depending on your business type, you will need to gather different forms and supporting documents:

For Businesses:

• Corporations, S Corporations, Partnerships, Tax-Exempt Organizations, and LLCs:
  • Form 433-B (OIC), Collection Information Statement for Businesses
  • Other supporting documentation

For Individuals:

• Wage Earners and Self-Employed People:
  • Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals
  • Other supporting documentation

Be Accurate and Complete

When appealing, accuracy is key. For each disputed item in your rejection, provide supporting documents to justify your case. This includes proof of income, expenses, and asset values. Check Section 10 of Form 433-A (OIC) and Section 7 of Form 433-B (OIC) in Form 656-B, Offer in Compromise (Booklet) for detailed information on required documents.

Key Points to Remember

• 30-Day Deadline: You must request an appeal within 30 days from the date on your rejection letter.
• Form 13711: Use this form or write a detailed letter to request your appeal.
• Gather Documents: Collect all necessary forms and supporting documentation specific to your situation.
• Accuracy: Ensure all information and documents are accurate and complete.

Call to Action

If your offer in compromise has been rejected, act quickly. Gather your documents, review your rejection, and decide if an appeal is the right step for you. Remember, you have the right to challenge the IRS decision and potentially resolve your tax debt more favorably.

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