Tax Relief Pros
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Offer in Compromise (OIC)

Settle your tax debt for less than you owe.

What is an Offer in Compromise?

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. It is a powerful tool for taxpayers who truly cannot afford to pay their tax debt in full. The IRS may accept an OIC if the amount offered represents the most they can expect to collect within a reasonable period of time.

While an OIC can provide a true fresh start, the program has very strict eligibility requirements and a low acceptance rate for those who apply without professional help.

Eligibility and Financial Analysis

The IRS will not accept an OIC unless the taxpayer has met several basic requirements:

  • Filed all required tax returns.
  • Made all required estimated tax payments for the current year.
  • Not be in an open bankruptcy proceeding.

If these are met, the core of the OIC is a detailed financial analysis. The IRS calculates your "Reasonable Collection Potential" (RCP) to determine if your offer is acceptable. This is a complex calculation based on:

  • Assets: The equity in your assets (home, cars, bank accounts, etc.).
  • Future Income: Your monthly disposable income (income minus allowable living expenses) multiplied by a set number of months.

Grounds for an OIC

The IRS will consider an OIC under three main grounds:

Doubt as to Collectibility

This is the most common reason. It means your assets and income are less than the full amount of the tax liability. You cannot afford to pay the debt in full.

Doubt as to Liability

This is used when there is a genuine dispute as to whether you actually owe the tax debt in the first place.

Effective Tax Administration

This applies if collecting the full tax debt would create an economic hardship or would be unfair and inequitable. This is rare.

Our OIC Success Process

Our firm dramatically increases the chances of a successful OIC by:

  1. Pre-Qualifying Analysis: We perform a detailed financial review *before* submitting an offer to determine if you are a good candidate and what a realistic offer amount would be.
  2. Meticulous Preparation: We prepare Form 433-A (OIC), a detailed financial statement, ensuring all your allowable expenses are included to minimize your calculated disposable income.
  3. Strategic Negotiation: We submit the offer and handle all follow-up questions and negotiations with the IRS Offer Specialist, advocating for your offer's acceptance.

An Offer in Compromise is a complex and lengthy process, but it can be life-changing. Contact us for a free, confidential consultation to see if you might qualify for this powerful tax relief program.

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