Settling for less than you owe, when you qualify.
An Offer in Compromise lets eligible taxpayers settle their IRS tax debt for less than the full balance. We find out whether you qualify, build the offer around your real finances, and represent you until the IRS decides.
Illustration only. Every case is different, and the IRS makes the final decision.
Is this you?
An offer is not for everyone. It usually makes sense when paying the full balance is not realistic, now or in the years ahead.
The balance is bigger than your means
What you owe is far more than you could pay, even over several years.
Your income barely covers the basics
After necessary living expenses, there is little or nothing left each month.
Few assets with real equity
There is not enough value in property, savings, or investments to cover the debt.
You want a clean end date
You would rather resolve the balance than carry a payment plan for years.
It is a calculation, not a negotiation.
The IRS generally accepts an offer when it equals or exceeds what it could reasonably collect from you. That figure has a name, and it comes from two parts of your finances.
What property, vehicles, savings, and investments are worth, minus what is owed on them.
What is left of your monthly income after allowable living expenses, projected forward.
The most the IRS expects it could collect. An acceptable offer generally reflects this amount.
Special circumstances, such as serious illness or other hardship, can also be considered.
Four things the IRS checks first.
If any of these is missing, the offer is returned without review. We make sure you are compliant before anything is submitted.
- All required tax returns are filed.
- Required estimated tax payments for the current year are made.
- You are not in an open bankruptcy proceeding.
- If you are an employer, federal tax deposits for the current quarter and the two before it are made.
Lump sum cash
Five or fewer payments- 20% of the offer is sent with the application.
- The rest is paid in five or fewer payments after the offer is accepted.
Periodic payment
Six or more monthly payments- The first proposed payment is sent with the application.
- Monthly payments continue while the IRS reviews the offer.
Nonrefundable IRS application fee. The fee and the initial payment are waived for individuals who meet the low income guidelines.
From first call to decision.
Five stages, with one point of contact the whole way through. We handle the paperwork and the conversations with the IRS.
- 1
Free case review
We look at the balance, your finances, and the IRS pre-qualifier criteria to see whether an offer is realistic, or whether another option fits better.
- 2
Financial statement
We prepare Form 433-A (OIC) for individuals, or Form 433-B (OIC) for businesses, documenting income, expenses, and asset equity.
- 3
Offer submitted
Form 656 goes to the IRS with the $205 application fee and the initial payment. Both are waived for applicants who meet the low income guidelines.
- 4
IRS investigation
An offer examiner reviews the file and may ask for more documents. We answer on your behalf. The full review can take up to 24 months.
- 5
Decision
If accepted, you complete the payments and stay in compliance. If rejected, there are 30 days to request an appeal with Form 13711.
What acceptance comes with.
An accepted offer has conditions. Knowing them up front avoids surprises later.
Stay current for five years
After acceptance, every return must be filed and paid on time for five years, or the offer can be defaulted.
Refunds are kept
The IRS keeps any tax refund due to you through the date the offer is accepted, including interest.
Liens are released at the end
A federal tax lien is released once the offer terms are fully met, not at acceptance.
What we do for you.
An Enrolled Agent leads your case, with the same person handling it from the first call to the IRS decision.
An honest first answer
If an offer is unlikely to be accepted, we tell you before you pay a fee, and show you the option that fits better.
A complete, documented file
Incomplete offers are returned. We assemble the forms, statements, and proof the IRS expects to see.
The offer amount, calculated
We work through the same numbers the IRS uses so the offer is grounded in your real finances.
Representation to the end
With your power of attorney, we deal with the offer examiner and keep you updated at every step.
About offers.
The questions we hear most about an Offer in Compromise. Anything else, ask us during your free case review.
How much will the IRS accept?
There is no set percentage. The IRS looks at your reasonable collection potential, which depends on your income, allowable expenses, and the equity in your assets. We calculate it with you before anything is submitted.
Can the IRS still collect while my offer is being reviewed?
The IRS considers your circumstances when deciding whether to keep or release a levy that was already in place before the offer. We address this with the examiner as part of your case.
What if my offer is rejected?
You can request an appeal within 30 days of the rejection letter using Form 13711. If an offer is not the right fit, other options such as a payment plan or Currently Not Collectible status may apply.
Do I have to use a professional?
No, but offers are detailed and incomplete ones are returned. Many people choose representation so the forms, financial statements, and communication with the IRS are handled correctly.
Other paths to consider.
An offer is one of several ways to handle a balance. These are the options we most often compare it with.
Installment Agreements & Payment Plans
Structured monthly plans negotiated with the IRS or the state.
View serviceRelated serviceCurrently Not Collectible (CNC) Status
Requesting a pause on collections during genuine financial hardship.
View serviceRelated servicePenalty Abatement
Requests to reduce or remove penalties where the case is eligible.
View serviceFind out if an offer is right for you.
Tell us about your balance and your finances. The first case review is free and confidential.
Free case reviewNo obligationOne point of contact