Letter 3820, Appeals Received Your Offer in Compromise and We Can Consider It, is generated by the IRS Independent Office of Appeals and mailed by the Centralized Offer in Compromise unit. It means the offer you submitted as part of a Collection Due Process hearing has been accepted for consideration and sent to the offer unit for investigation.
How the Process Works
Appeals does not do the detailed financial investigation itself. The offer unit reviews your Form 656 and Form 433-A, verifies income, expenses, and asset equity, and reports its recommendation back to Appeals. The letter explains that you will have a chance to respond to that evaluation before Appeals decides.
What to Do While You Wait
Answer every request from the offer unit fully and on time. Keep filing returns and paying current taxes. If your financial situation changes significantly, tell the examiner. If the offer unit's numbers are wrong, you will get a chance to say so. Use it, because the hearing officer will rely heavily on that report.
Your CDP hearing remains open during this process, which generally keeps levy action suspended on the periods in the hearing.
If you received Letter 3820, call us at (813) 229-7100. We prepare offers and respond to offer investigations regularly.