Offer in Compromise Services

An Offer in Compromise is an agreement between you and the IRS that settles your tax debt for less than the full amount you owe. The IRS may accept an OIC if they determine it's the most they can reasonably expect to collect within a reasonable timeframe, or if there's doubt about the amount owed or your ability to pay. This program provides a legitimate way to resolve tax problems when paying the full amount would create financial hardship.

OIC is different from other tax resolution options like installment agreements, which allow you to pay the full amount over time. With an OIC, you're settling for less than you owe, which can provide significant financial relief. However, OIC is also one of the most complex tax resolution options, requiring extensive documentation, careful calculation, and strategic negotiation.

The IRS accepts OICs in three circumstances: doubt as to liability (you don't actually owe the tax), doubt as to collectibility (you can't pay the full amount), or effective tax administration (collecting would be unfair or inequitable). Most OICs are based on doubt as to collectibility, meaning the IRS determines you cannot pay the full amount within the collection statute period.

OIC is available to taxpayers who meet specific criteria. The IRS evaluates your ability to pay based on your income, expenses, assets, and future earning potential. To qualify, you must demonstrate that paying the full amount would create financial hardship or that you cannot pay within the collection statute period.

• Taxpayers with limited income and assets relative to their tax debt
• Taxpayers experiencing financial hardship
• Taxpayers with genuine disputes about the amount owed
• Taxpayers where collection would be unfair or inequitable

Qualifying for OIC requires careful financial analysis and documentation. The IRS uses specific formulas to calculate your reasonable collection potential (RCP), which determines the minimum acceptable offer amount. Our team can help you understand if you qualify and calculate the optimal offer amount to maximize your chances of acceptance while minimizing what you pay.

There are two main types of OIC offers, each with different payment terms and requirements. Understanding the differences can help you choose the best option for your situation.

Our comprehensive OIC process is designed to maximize your chances of acceptance while ensuring you offer the minimum amount necessary. We handle all aspects of the process, from initial evaluation to final settlement.

OIC requires extensive financial documentation to support your application. The IRS needs a complete picture of your financial situation to evaluate your ability to pay and determine an acceptable offer amount.

• Tax returns for all years in question
• Bank statements for the past 3 months for all accounts
• Income documentation including pay stubs, W-2s, 1099s, and business income records
• Expense documentation including mortgage statements, utility bills, and monthly expenses
• Asset documentation including property valuations, vehicle information, and investment account statements

The documentation requirements for OIC are extensive, but our team can help you identify what's needed and assist in gathering all necessary materials. We understand that gathering this documentation can be overwhelming, and we're here to guide you through the process and ensure everything is complete and accurate.

The OIC process is one of the longest tax resolution processes, typically taking 6-12 months or more from application to final resolution. Understanding the timeline can help you plan accordingly.

Throughout the process, we provide regular updates on the status of your OIC application. We believe in transparent communication and ensure you're always informed about what's happening and what to expect next.