What are the current IRS statistics on the Offer in Compromise acceptance rate?
The Offer in Compromise acceptance rate is 40.32 percent. The IRS Data Book for 2017 (released March 29, 2018) shows that 62,000 Offers were received with 25,000 being accepted. Thus, the Offer in Compromise acceptance rate was 40.32 percent and the Offer in Compromise rejection rate was 59.68 percent. The Average Dollar amount of the Accepted Offers was $10,234.48.
When you compare the above most recent Offer in Compromise acceptance rate statistics (Fiscal Year 2017) with Fiscal Years 2014 through 2016, the acceptance and rejection percentages are about the same. The average Offer in Compromise acceptance rate for such years being 40.80 percent. The average Offer in Compromise rejection rate is 59.20 percent. However, the Average Dollar Amount of Accepted Offers is steadily increasing each year (i.e., from $6,642.74 to $10,234.48).
The IRS Data Books for 2016 and 2015, show the number of IRS Offers in Compromise received, number of Offers accepted, and the total dollar amount of the Offers accepted as follows:
|FY||TTL Offers Received||Offers Accepted||% Accepted||% Rejected||Average $ Amount of Accepted Offers (Derived)|
|2016||63,000||27,000||42.86||57.14||$225,946,000 /27,000= $8,368.00 Average|
|2015||67,000||27,000||40.3||59.7||$204,748,000 / 27,000= $7,583.00 Average|
|2014||68,000||27,000||39.71||60.29||$179,354,000 / 27,000= $6,642.74 Average|
Your specific facts and circumstances and skilled representation determine your specific results. The Taxpayer Advocate has made recommendations to improve the Offer in Compromise program.
IRC Section 7122(b) requires that in civil cases where the unpaid amount of tax assessed (including any interest and other additions) is $50,000.00 or more, the Treasury Department’s General Counsel review and provide an opinion in support of accepted Offers in Compromise. The Taxpayer Advocate believes that the present Counsel review procedure burdens taxpayers and the government by significantly delaying Offer in Compromise decisions.The Taxpayer Advocate also recommends repealing of the Partial Payment requirements for both “lump sum” and “periodic payment” offer applications. Hopefully, such recommendations will be acted on.