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I filled out an "Offer in Compromise" form and sent it to the IRS. What's the likely response to expect from the IRS?

Waltham, MA |

All monies left in my accounts were surrendered at the time I filled out the OFFER IN COMPROMISE form. I only had a few hundreds to surrender but would that save me from paying the few thousands the IRS is asking for? I told the IRS my expenses were being covered by a friend whose money I've been borrowing. All true. I have no other sources of income (unemployed), my unemployment benefits have expired, and no other monies the IRS can come after. All money I had I gave it to the IRS at the time a submitted the Offer in Compromise form, along with all the documentation the IRS asks for. What should I expect happening?

I forgot to mention that I do have mortgages on an apartment unit and a car. Both of these properties on loan. Did received an IRS response ltr. notifying that "While investigating your offer, we will determine whether a notice of federal tax lien should be filed in order to protect the government's interests. If we determine to file a notice of federal tax lien we will provide you with notification within five days of the filing, You will have the opportunity to request a hearing with Appeals at which you may propose alternative methods for protecting the government's interest." What are the chances IRS determines to file a federal tax lien against me?

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Attorney answers 3

Best Answer

You will likely hear from the IRS in about 4 to 6 months once an examiner has been assigned to your file. They will advise you of an acceptance, rejection or adjusted Offer amount that they would be willing to accept from you.


Offers in Compromise are very complex and require the preparer to have extensive knowledge of how they work....I highly recommend your getting legal counsel for yourself as proper presentaion is critical. They take from 6 months to a year as well to complete.

Eric P. Rothenberg, P.C.
160 Gould Street-Suite 320
Needham, MA 02494-2300
Tel: 781-239-8900
Fax: 781-658-2203

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Its really unclear, but I can tell you from my experience, going forward without an attorney or experienced tax lawyer can really hurt you in a situation like this. Without an attorney, you have little bargaining or negotiating power. Further, an attorney can negotiate on your behalf, with full knowledge of the tax laws and code, in an effort to protect you against wage garnishment, and potential tax lien.

Feel free to contact our office at (617) 742-4491 for help with this matter.