Q: About how long will it take a tax lawyer to reach an offer in compromise with the IRS?
I have been on disability for over a year. I owe $20,000 in back taxes and around $9,000 in penalties and fees. Qualifier notes that I qualify for an "offer in compromise" but most websites say it takes 6 months to get it approved. I am expecting a W.C. settlement soon... But would like to settle my tax obligation now while I qualify for the C&R. I don't think they can take or tax my settlement.(???).. But that may not be true if I deposit money. Can I get an estimate of how long the time frame is for an attorney to mediate with the IRS.
A: Unfortunately the IRS is still delayed when it comes to their backlog. Things such as resolution proposals, including an OIC, can take some time to be processed through their systems and assigned to a representative for review. I would say it's safe to say 6 months is a good estimate, however it may be longer depending on if it is approved or denied/ if appeal actions are taken. This is generally what we tell our clients unless they are dealing directly with an assigned Revenue Officer/ Appeals Officer.
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