The IRS Rejected My Offer in Compromise
A rejected OIC is not the end. You have appeal rights, and the rejection itself tells you what to fix.
The Problem
You submitted an Offer in Compromise and the IRS returned or rejected it. You waited 6-12 months, made payments during the pendency period, and now you're back to square one. The collection statute was tolled during the OIC process, giving the IRS more time to collect.
The Solution
If rejected (not returned for processability), you have 30 days to appeal. The Appeals Officer has broad settlement authority and may accept an offer that the OIC examiner rejected. The rejection letter tells you why: either your Reasonable Collection Potential was calculated higher than your offer, or there was a compliance issue.
Sometimes the answer isn't another OIC. A partial-pay installment agreement or CNC status may be a better path. Let me review the rejection and recommend the next move.
Free consultation. I'll pull your transcripts, assess the damage, and give you a plan. 32 years of IRS experience.
Get a Free Consultation →