If you have serious tax debt, and you cannot pay back the full amount to the Internal Revenue Service (IRS), you may be able to reach a settlement with the agency. In order to be eligible to pay back your IRS tax debt for less than you owe, you must submit an offer in compromise (OIC) and have your offer approved by the agency.
If your OIC has been denied, you are not necessarily out of luck. All U.S. taxpayers have the right to file an appeal regarding the denial of their proposed offer in compromise. However, you only have limited to appeal the initial decision. If the IRS has rejected your offer in compromise, it is imperative that you act quickly to protect your rights. Here, our experienced Chicago IRS tax debt settlement lawyers explain what happens after your offer in compromise has been rejected.
You Will Receive a Written Notification Letter From the IRS
Under IRS regulations, the agency is legally required to notify taxpayers in writing regarding any decisions that have been made in regard to their tax obligations. If your offer in compromise has been denied, you will be notified in writing of the denial. Your denial letter should contain more information pertaining to why the IRS made its decision.
Please make sure that the IRS has the correct mailing address on file. You can check your information through your Online IRS Tax Account. If you have not set up an online account, you may want to do so. It can often make it easier to manage your tax debt, make tax payments, and handle correspondence from the IRS through an online tax account.
You Have a Right to File an Appeal
If your tax debt settlement offer has been denied, you have the legal right to file an appeal. This appeal must be filed with the IRS Office of Appeals. This is your first step to continue fighting for a fair, reasonable tax settlement. Under IRS regulations, you must submit your appeal within 30 days of the date that is listed on your OIC denial letter.
If you fail to file an appeal during this time frame, you will lose access to an appeal. This means that the IRS may restart active collection proceedings. A lien may be placed on your property and/or a levy may be placed on your bank account.
You Should Consult with an Experienced Chicago Tax Lawyer Immediately
The IRS can reject tax debt settlement offers for a wide range of different reasons. If you believe that you submitted a reasonable offer, and it has been denied by the agency, you need to consult an experienced Chicago IRS tax lawyer as soon as possible. Your lawyer will be able to review your case and help you submit the strongest possible appeal so that you can reach a reasonable settlement with the IRS.
At North Suburban Legal Services LLC, our Chicago tax debt attorneys have extensive experience representing the legal rights and financial interests of taxpayers in Illinois. If your OIC was rejected by the IRS, please do not hesitate to contact our law firm today at (312) 313-4038 for your free, fully private consultation. With an office in Chicago, we represent taxpayers throughout the region, including in Cook County, Will County, DuPage County, Lake County, and McHenry County.