IRS Appeals for Rejected Offers: Licensed Tax Agents in Pasadena, CA
A rejection letter from the IRS can feel like the end of the road, especially after months of gathering paperwork and waiting. It often is not. Sometimes the IRS rejects an offer, and at Fresh Start Tax Relief Services in Pasadena, we know how to appeal that rejection and work toward a good compromise agreement. Our women-owned team of licensed tax agents has decades of experience dealing with the IRS, and we understand both why offers get turned down and what it takes to change the outcome.
Why the IRS Rejects Offers
Most rejections come down to numbers. The IRS calculates what it believes it can reasonably collect from you, based on the equity in your assets and your future disposable income. If it decides that figure is higher than your offer, it will reject it. Common causes include:
- Assets valued higher than their realistic worth
- Living expenses disallowed or reduced below what you actually spend
- Income projected higher than what you can reliably expect
- A finding that accepting the offer would not be in the government's best interest
Each of these can be reviewed and, in many cases, challenged with better documentation or a clearer explanation of your circumstances.
How the Appeal Works
The 30-Day Window
You generally have 30 days from the date on the rejection letter to request an appeal. That request can be made with Form 13711 or a written protest explaining why you disagree with the decision. Missing the window usually means losing the right to appeal that offer.
An Independent Review
Appeals are handled by the IRS Independent Office of Appeals, which operates separately from the collection and examination staff who made the original decision. That independence gives your case a fresh set of eyes and a real chance at a different result.
Protection While You Wait
The IRS generally cannot levy for 30 days after a rejection and while a timely appeal is pending. That breathing room lets the appeal proceed without new collection pressure.
Rejected Versus Returned
Not every offer that comes back is a rejection. A returned offer is one the IRS would not process at all, often because of missing information, unfiled returns, or an open bankruptcy. Returned offers generally cannot be appealed. A rejected offer was fully evaluated and turned down, and that decision can be appealed. Knowing which one you have is the first step.
What We Do on Your Behalf
When you bring us a rejection letter, we review the IRS calculation line by line. We look for overvalued assets, expenses that should have been allowed, and income figures that do not match your situation. Then we prepare the appeal, gather supporting documentation, and present your case. You do not have to argue with the IRS yourself. If your original
Offer in Compromise was prepared elsewhere, we are glad to take a fresh look.
If the Appeal Does Not Succeed
An unsuccessful appeal does not leave you without options. If your circumstances change, a new offer can be submitted. For many taxpayers, an installment agreement becomes the most practical path forward, sometimes paired with penalty abatement. We will tell you honestly which route gives you the best chance at lasting relief.
Serving Pasadena and Taxpayers Nationwide
We help clients in Pasadena, Sierra Madre, Alhambra, La Cañada Flintridge, and across Los Angeles County. We also work well beyond the region: "Not only do we service every single county in California, but we service taxpayers nationwide." Learn more about the Tax Superwomen on the Fresh Start Tax Relief home page.
Frequently Asked Questions
How long do I have to appeal a rejected Offer in Compromise?
You generally have 30 days from the date on the IRS rejection letter. The appeal can be requested with Form 13711 or a written protest.
What is the difference between a returned offer and a rejected offer?
A returned offer was not processed, often due to missing information or unfiled returns, and generally cannot be appealed. A rejected offer was evaluated and denied, and it can be appealed.
Can the IRS levy my accounts while my appeal is pending?
Generally, no. The IRS cannot levy for 30 days after a rejection or while a timely appeal is pending.
Who reviews my appeal?
Appeals are handled by the IRS Independent Office of Appeals, which operates separately from the collection and examination staff who made the original decision.
What if my appeal is not successful?
You can submit a new offer if your circumstances change, or pursue an installment agreement. We review your situation to determine the best next step.