Tax Tip 2023-71: Appeal a rejected offer in compromise

IRS Tax Tips

May 24, 2023

Issue Number: Tax Tip 2023-71

Appeal a rejected offer in compromise

After the IRS rejects an offer in compromise, taxpayers have 30 days from the date on the rejection letter to request an appeal of the decision.

To request an appeal, taxpayers file Form 13711, Request for Appeal of Offer in Compromise, or mail a letter to the IRS with certain information about their situation. Taxpayers should mail their request for an appeal to the office that sent them the rejection letter.

How to decide whether to submit an appeal
To figure out whether to submit an appeal, taxpayers should review the Income/Expense and Asset/Equity Tables that came with the OIC rejection letter and Form 656, Offer in Compromise.

Taxpayers should also gather and review the following documents.

Corporations, S corporations, partnerships, tax exempt organizations and limited liability companies defined as a corporation and other LLCs:

Form 433-B (OIC), Collection Information Statement for Businesses
Other supporting documentation

Individual wage earners and self-employed people:

Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals
Other supporting documentation

Address the reasons for disagreement and provide supporting documentation
For each area of the offer in compromise rejection where the taxpayer disagrees with the IRS, they need to provide documents to support the income item, expense item and asset value they dispute. For details on the supporting documents and kinds of records to keep, see Section 10 of Form 433-A and Section 7 of Form 433-B in Form 656-B, Offer in Compromise (Booklet).

More information:
Your Appeal Rights and How to Prepare a Protest if You Don't Agree, Publication 5
Overview of the Appeals Process Brochure, Publication 4227
Your Federal Income Tax, Publication 17

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Issue Number: Tax Tip 2023-71