We just had a client pay their Offer in Compromise to settle their debts with the IRS. The client settled a $50,000 tax debt for $2700. It took 12 months to negotiate and payoff. Here's the history:
July 24, 2009 - Client was referred to us. After an analysis of their case, hired us.
Jul to Sept 2009 - Keep client out of collections with Power of Attorney
October 27, 2009 - We prepared Offer for client. Sent docs to client to submit to IRS.
June thru Sep 2010 - Back and forth between Offer division substantiating information, etc.
Oct 2010 - Offer in Compromise accepted.
January 2011 - Offer in Compromise paid in full by taxpayer.
So this unusually long Offer took 12 months for approval. That,we would say, is far above the average time to process. Do note that the IRS rules recently have changed very positively -- Offer in Compromise Rule Changes: Settle for up to 75% Less.
