Offer in Compromise
Settle Your IRS Debt for Less Than You Owe
The IRS Offer in Compromise (OIC) program allows qualifying taxpayers to settle their tax debt for less than the full amount owed. Our licensed attorneys have helped hundreds of clients dramatically reduce what they owe — in many cases by 50–90%. If you qualify, this could be the most powerful tool available for resolving your tax debt permanently.
What Is an Offer in Compromise?
An Offer in Compromise is a formal agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. The IRS accepts an OIC when it believes the offered amount represents the most it can reasonably expect to collect — either because the taxpayer cannot pay the full amount, paying in full would create an economic hardship, or there is doubt about whether the tax liability is correct. The program is managed under IRS Form 656 and requires a thorough financial disclosure (Form 433-A or 433-B). Applications involve a detailed review of your income, expenses, assets, and ability to pay.
How It Works
Free Case Evaluation
We review your income, expenses, assets, and total tax liability to determine if you likely qualify for an OIC and estimate what your offer amount could be.
Financial Documentation
We gather and organize all required financial disclosures — bank statements, pay stubs, asset values, and monthly expenses — to build the strongest possible application.
Offer Preparation & Submission
Our attorneys prepare your complete OIC package including Forms 656 and 433-A/B, calculate the optimal offer amount, and submit to the IRS with a comprehensive supporting narrative.
IRS Review & Negotiation
The IRS typically takes 6–12 months to review an OIC. We handle all IRS communications, respond to requests for additional information, and negotiate on your behalf throughout the process.
Acceptance & Resolution
Once accepted, you pay the agreed amount and your remaining tax debt is permanently resolved. We ensure you remain compliant so the IRS does not default the agreement.
Who Should Consider This?
- ✓You cannot pay the full tax debt within the collection statute period
- ✓Paying the full amount would create an economic hardship
- ✓There is legitimate doubt about the accuracy of the assessed tax
- ✓All required tax returns are filed (or will be filed as part of the process)
- ✓You are not currently in an open bankruptcy proceeding
- ✓You are not a current debtor in a bankruptcy case
Key Benefits
Reduce Total Debt
Settle for a fraction of what you owe — often 10–50 cents on the dollar for qualifying taxpayers.
Permanent Resolution
Once accepted and paid, your IRS debt is gone permanently. No more interest, penalties, or collection actions.
Stops All Collections
While your OIC is under review, the IRS cannot levy your wages, bank accounts, or property.
Fresh Financial Start
After resolution, liens are released and you can rebuild credit, buy property, and move forward financially.
Ready to Resolve Your Offer in Compromise Issue?
Free consultation. No obligation. A licensed tax attorney will call you within 5 minutes.
Frequently Asked Questions
How much will the IRS settle for?+
The IRS calculates the minimum acceptable offer based on your "Reasonable Collection Potential" (RCP) — essentially what they could collect from you through all available means. This includes equity in assets plus future income, discounted over a period. Many clients with limited income and assets qualify for offers well below 20% of the original balance.
How long does the OIC process take?+
The IRS typically takes 6–12 months to process an OIC application. Complex cases can take longer. During this time, collections are suspended, giving you breathing room.
What happens if my offer is rejected?+
You have the right to appeal a rejection within 30 days. Our attorneys handle appeals aggressively. If the appeal is unsuccessful, we can explore other resolution options including installment agreements or Currently Not Collectible status.
Do I have to make payments while the OIC is pending?+
You must continue making required estimated tax payments and filing returns during the OIC review period. You do not need to make payments toward the existing debt while the offer is pending.
Can I apply for an OIC if I have unfiled returns?+
You must be current on all required tax filings before submitting an OIC. Our team can help you file any outstanding returns as part of the preparation process.
Related Services
Installment Agreement
Establish a formal monthly payment plan with the IRS to satisfy your tax debt over time and stop collection actions.
Currently Not Collectible
If your income barely covers your basic living expenses, the IRS is required by law to suspend collection activity on your account.
Partial Payment Installment Agreement
A Partial Payment Installment Agreement lets you make affordable monthly payments that may never fully pay off your debt — and when the 10-year collection statute expires, the rest is gone.