Skip to content
Get started

Offer In Compromise

man placing block to create bridge

Understanding Offer in Compromise (OIC)

An Offer in Compromise (OIC) is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. It’s essentially a way to negotiate a “fresh start” with the IRS, and for many, it can be a game-changer. 

Learn More
Man looking at computer

OIC Can Get Complicated

However, getting an OIC approved is not easy—it requires proving to the IRS that paying the full debt would cause you significant financial hardship or that the amount owed is greater than what the IRS could reasonably collect from you.

Learn More

What Is an Offer in Compromise?

An OIC is a formal request submitted to the IRS where you propose a reduced amount to settle your outstanding tax debt. It’s important to note that not everyone qualifies for an OIC, and the IRS will only accept an offer if they believe the reduced amount is the most they can collect from you. 

The IRS considers several factors when evaluating an OIC, including:

IRS sign

Ability to Pay

The IRS will look at your assets, income, and expenses to determine if you can afford to pay the full debt.

Income and Expenses

A detailed analysis of your financial situation, including monthly living expenses and income, will be used to assess whether you can make payments over time.

Asset Equity

The IRS will evaluate the value of your assets (home, vehicles, savings) to determine if they can be liquidated to pay the debt.

Future Earning Potential

They will also assess your ability to earn money in the future to gauge whether you can pay off the debt in full over time.

The Tax Debt Negotiation Process

The negotiation process begins with a thorough assessment of your finances The primary goal of the OIC program is to allow taxpayers to settle their debts if paying in full would create an undue financial burden, or if the IRS cannot realistically collect the full amount.

Learn more
Professionals looking over spreadsheets

Why Work with TAA?

At Tax Attorneys of America, we offer a free comprehensive consultation to help you fully understand your tax situation. Before you spend any money, we’ll even contact the IRS on your behalf to gain a clear picture of your tax burden and determine where you stand. This includes assessing whether you're at risk of IRS action or if you’re close to a resolution.

Learn More
puzzle pieces

Solve Your Tax Debt Concerns

Our team of experts specializes in negotiating with the IRS and navigating the complexities of the Offer in Compromise (OIC) process. Trying to settle your tax debt without professional assistance can be frustrating, time-consuming, and often leads to missed opportunities. Working with us boosts your chances of success and ensures your interests are protected throughout the process.

Learn More

The Tax Debt Negotiation Process

The negotiation process begins with a thorough assessment of your financial situation involving gathering documentation such as income statements, expenses, assets, and liabilities to present a clear picture of your ability to pay.

Once the financial information is compiled, your representative submits the necessary forms and proposals to the IRS or state. The tax agency will then review the submission to determine eligibility and assess whether the proposed resolution aligns with their collection goals.

Negotiations often involve back-and-forth communication, as the state and IRS may request additional documentation, clarification, or adjustments to the proposal.

Learn more
handshake

Road Blocks

While the concept of tax debt negotiation may seem straightforward, the reality is often very complex. Tax laws and regulations are not easily understood, and the burden of proof lies with you to demonstrate your eligibility for relief.

Road Closed Sign

Strict Eligibility Requirements

Programs like the Offer in Compromise have rigorous criteria, and the IRS accepts only a small percentage of applications.

Extensive Documentation

Tax agencies require detailed financial disclosures, and even minor errors or omissions can lead to delays or denials.

Negotiation Expertise

Effectively negotiating with tax authorities requires a deep understanding of tax laws, policies, and procedures. Taxpayers without this expertise may struggle to present a compelling case.

Time-Consuming Process

Resolving tax debt can take months or even years, depending on the complexity of the case and the responsiveness of the tax agency.

Get Started

Get Financial Relief

If you're facing overwhelming tax debt, an Offer in Compromise could provide the financial relief you need. However, the IRS doesn’t make this process easy, and without expert help, it’s difficult to succeed. We’ve guided thousands of people through the process, handling all the heavy lifting and fighting for the best possible outcome.

Eligibility Requirements

We help you navigate programs like the Currently Non Collectable ensuring your application meets the IRS’s rigorous criteria for acceptance.

Comprehensive Documentation Support

Our team handles the detailed financial disclosures required by tax agencies, minimizing the risk of delays or denials due to errors or omissions.

Skilled Negotiation

With deep knowledge of tax laws, policies, and procedures, we effectively negotiate on your behalf, presenting a strong case for favorable resolutions.

Clear Communication

We guide you through the time-consuming process with clear communication and ethical practices, ensuring every step is managed efficiently and quickly, maximizing your chances for success.