How long does the IRS take to process an Offer in Compromise?

The IRS currently takes 6-12 months to process most Offers in Compromise, though complex cases can take longer. Here's the typical timeline: Months 1-2: the IRS acknowledges receipt and assigns your case to the Centralized OIC unit or a local field office. Months 2-6: an IRS examiner reviews your financial information, verifies income and expenses, may request additional documentation, and may contact you or your representative. Months 6-10: the examiner makes a determination (accept, reject, or return). If they propose to reject, you get 30 days to appeal to the Independent Office of Appeals. While your OIC is pending, the IRS collection statute is suspended, and the IRS generally cannot take enforced collection action (though the statutory lien remains). You must continue making all estimated tax payments and stay current on all filing obligations while the OIC is pending. If the IRS doesn't make a decision within 24 months from the date of submission, the OIC is deemed accepted by law. Use this waiting period to maintain perfect tax compliance, as any new balance or unfiled return will cause your OIC to be returned without consideration.