As reminded in the IRS Tax Tip 2024-54, if your offer in compromise is rejected you have 30 days to request an appeal using Form 13711 – Request for Appeal of Offer in Compromise. In the IRS form, you will have to list the a) disagreed item and b) the reason for the disagreement, plus in some cases provided updated or more accurate support documentation for the business (form 433-B) or personal (form 433-A).
Our recommendation is to do it right from the beginning so there is no need for the appeal or to resubmit another offer in compromise if the support documentation has changed (different values). Also, our experience with the IRS agents has been quite positive in the last interactions provided even feedback or allowing to provide more support immediately to expedite the process.
Our last case was a married couple that filed jointly generating IRS taxes due, and more recently filed separately so forms and support documentation were issued for each taxpayer individually and the approved offer in compromise allowed the taxpayers to a) get forgiveness on over $100k of IRS tax debt and b) renew their passports and travel internationally.
