If the IRS rejects an offer in compromise, taxpayers have 30 days from the date on the rejection letter to request an appeal of that decision.
How to decide whether to submit an appeal
To identify areas of disagreement and decide whether to submit an appeal, taxpayers should review the Income/Expense and Asset/Equity Tables that came with the OIC rejection letter and Form 656, Offer in Compromise.
Documents to gather and review prior to submitting an appeal
Corporations, S corporations, partnerships, tax exempt organizations and limited liability companies defined as a corporation and other LLCs:
Individual wage earners and self-employed people:
Taxpayers must be accurate and complete when addressing the reasons for disagreement
For each area of the offer in compromise rejection where the taxpayer disagrees with the IRS, they need to provide documents to support the income item, expense item and asset value they dispute.