IRS Problem Resolution
Settle for less than owed — if you qualify.
An Offer in Compromise lets qualifying taxpayers settle a tax debt for less than the full balance. Eligibility depends on income, assets, and monthly expenses — not just how much you owe. We evaluate eligibility for free during the initial consultation.
In short
An Offer in Compromise (OIC) is an agreement to settle your IRS tax debt for less than you owe. The IRS accepts an OIC when there is "doubt as to collectibility" — meaning the amount offered represents the most they could reasonably expect to collect. Not everyone qualifies, and filing a frivolous OIC just delays real resolution. We evaluate eligibility before recommending an OIC.
How the IRS calculates "reasonable collection potential"
The IRS adds up (a) your equity in all assets at quick-sale value, and (b) your monthly disposable income (income minus allowed living expenses) multiplied by 12 (for lump-sum offers) or 24 (for periodic-payment offers). The total is your Reasonable Collection Potential (RCP). The IRS will generally accept any OIC at or above RCP.
Why most TV-advertised "tax relief" OICs fail
The IRS rejects roughly 60% of submitted OICs — usually because the offer is below RCP, the taxpayer hasn't filed all returns, or required disclosures are missing. Companies that promise OIC outcomes without analyzing finances first are setting clients up to lose retainer fees on rejected offers. We do the eligibility math before quoting.
The OIC process
- Detailed financial analysis (Form 433-A for individuals, 433-B for businesses)
- Calculate Reasonable Collection Potential
- Submit Form 656 with documentation
- IRS review (typically 6-12 months)
- Acceptance, counter-offer, or rejection
- Compliance period: file and pay taxes on time for 5 years post-acceptance
FAQ
Questions we hear about offer in compromise.
How much can I save?
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Ready for a straight answer on your taxes?
Start with a free consultation.
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