Offer in Compromise (OIC) Representation
An Offer in Compromise may allow eligible taxpayers to settle IRS tax debt for less than the full amount owed. Qualification depends on income, assets, expenses, and compliance status.
An IRS Offer in Compromise is a program that allows qualified taxpayers to settle a tax debt for less than the total amount owed when the IRS determines the offered amount reflects the taxpayer’s ability to pay. An Offer in Compromise is not automatic. The IRS evaluates financial information, compliance history, and the type of tax liability before approving an offer.
Who May Qualify for an Offer in Compromise?
IRS tax resolution includes multiple programs designed to resolve back taxes and stop collections. We analyze your financial situation and apply the IRS strategy that best fits your circumstance.
You are current (or can become current) with required tax filings
Your financial situation shows limited ability to pay the full balance
You can document income, assets, and necessary living expenses
You can make the required offer payments and remain compliant going forward
Common Reasons Offers Are Denied
Missing or unfiled tax returns
Incomplete financial documentation
Offer amount below what the IRS believes you can pay
Not staying current on estimated tax payments or withholding
Equity in assets that increases ability to pay
Our Offer in Compromise Process
Pre-Qualification & Case Review
We review your situation to determine whether an OIC may be a viable option.
Compliance & Investigation
We confirm filing compliance and review IRS transcripts, balances, and collection history.
Financial Analysis & Offer Calculation
We analyze income, assets, and allowable expenses to determine ability to pay and estimate a realistic offer amount.
Submission, Follow Up, and Negotiation
We prepare the OIC package, submit required forms and supporting documents, and communicate with the IRS through the review process.
Common IRS Tax Resolution Questions
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No. Qualification for an Offer in Compromise is not automatic. The IRS evaluates eligibility based on a taxpayer’s reasonable collection potential (RCP), which includes income, allowable living expenses, asset equity, and overall financial condition.
To qualify, taxpayers must:
Be current with all required tax filings
Have made required estimated tax payments (if applicable)
Not be in an open bankruptcy proceeding
An Offer in Compromise is approved only when the IRS determines it is unlikely to collect the full amount owed within the statutory collection period.
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The Offer in Compromise process typically takes several months and, in many cases, can extend beyond six months depending on case complexity and IRS workload.
After submission, the IRS will:
Confirm the application is processable
Assign the case to an examiner
Conduct a detailed financial review
Request additional documentation if necessary
During review, collection activity is generally suspended. Processing times vary based on the accuracy of the submission and responsiveness to IRS requests.
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No. The IRS requires full filing compliance before an Offer in Compromise will be considered. All required federal tax returns must be filed prior to submission.
If tax returns are missing, they must be prepared and filed first to:
Establish the correct liability
Confirm compliance status
Determine accurate financial eligibility
Filing compliance is a prerequisite to any formal IRS resolution program.
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Yes. As a federally licensed Enrolled Agent, representation before the Internal Revenue Service is authorized in all 50 states.
IRS tax matters are handled at the federal level and do not require in-person meetings. Representation is conducted through authorized IRS channels, including Power of Attorney filings and direct communication with assigned IRS units or examiners.