Letter 3489: Offer in Compromise Reconsideration Request

The Letter 3489 is sent by the IRS to inform taxpayers that their request for reconsideration of a previously denied offer in compromise (OIC) is being reviewed. This letter serves as an acknowledgement that the IRS has received the reconsideration request and will assess whether the new information provided justifies accepting the OIC.

Key aspects of Letter 3489:

• Reconsideration Request Received: The letter confirms that the IRS has received the taxpayer’s request to reconsider a previously denied offer in compromise. This typically occurs when the taxpayer submits new financial information or evidence that was not available during the initial OIC review.
• Next Steps in the Process: The IRS will review the reconsideration request and determine whether the new information warrants acceptance of the offer. The letter may provide an estimated timeline for completing the review and notify the taxpayer if additional documentation is needed.
• Possible Outcomes: Once the review is complete, the IRS will either approve or deny the reconsideration request. If approved, the taxpayer will receive instructions on how to proceed with the OIC. If denied again, the taxpayer will be notified of their remaining options for settling the tax debt.
• No Immediate Action Required: In most cases, the letter reassures taxpayers that no further action is required until the IRS completes its review of the reconsideration request.

Letter 3489 is crucial for taxpayers seeking a second chance at having their offer in compromise accepted, offering them the opportunity to provide new information and potentially resolve their tax debt for less than the full amount owed.