It usually takes about 7 months to settle with the IRS/State. First we need to gather evidence for the case, which would include financials for an Offer in Compromise and a narrative for Penalty Abatement. This takes approximately one month. Then we submit the OIC to the IRS/State for review and to verify financials. This takes about 3 or 4 months, after which the IRS/State will either accept or reject the OIC. If the OIC is rejected, it takes about 2 months to appeal the judgment.