What if my offer in compromise is processable but ultimately not accepted; will the application fee be refunded to me?
No. The IRS will retain the fee once the offer is deemed processable, even if the offer is rejected because the amount offered is too low based on the IRS’s evaluation of the taxpayer’s financial condition. The taxpayer is given the opportunity to increase the amount offered, but if the taxpayer does not do so, or demonstrate special circumstances, the IRS will reject the offer. Also, the offer will be rejected if upon request the taxpayer fails to submit additional financial documents to assist in the IRS review. In this case the offer in compromise will be returned without further consideration, and no appeal rights will be provided.
Related Questions
- What if my Offer In Compromise is not accepted, will the application fee, the 20% lump sum deposit and/or the periodic payment amount, be refunded to me?
- What happens to the Offer In Compromise and the application fee and 20% deposit or periodic payments, after I send it to the IRS?
- What if my offer in compromise is processable but ultimately not accepted; will the application fee be refunded to me?
