Offer in Compromise
If you’re struggling financially, the IRS may allow a reduced settlement — giving you a chance at a fresh start.
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Our 4-step
Tax Relief Process
No more calls, no more letters — you’re breaking up with the IRS.
Once you’re our client, we take over all communication.
Tell us about your IRS letters, tax debt, or unfiled returns. We’ll listen, review your situation, and explain your options.
We pull your IRS transcripts to see what the IRS sees — penalties, interest, and any missing returns — then get you filed and eligible for relief.
We design a customized strategy that fits your numbers — an Offer in Compromise, Installment Agreement, Penalty Abatement, or another relief program.
We negotiate directly with the IRS on your behalf, keep you updated every step of the way, and help you finally get back on track.
What is an Offer in Compromise (OIC)?
An Offer in Compromise (OIC) is a program that lets you settle your IRS tax debt for less than the full amount you owe. It’s designed for people who are facing real financial hardship and simply cannot pay their full balance.
If approved, you pay a reduced amount and the IRS forgives the rest.
You can settle in two ways:
Lump Sum – Pay the agreed amount in 5 or fewer payments within 5 months.
Periodic Payments – Pay monthly over 6–24 months until the amount is paid.
Will the IRS Accept an OIC?
The tax bill is wrong – There’s a real dispute about whether you actually owe the full amount.
You can’t pay in full – Your income and assets are less than the total debt.
It would cause hardship – Even if you technically could pay, doing so would create serious financial hardship or be unfair due to special circumstances.
To be eligible: You must have filed all required tax returns, be current on estimated payments, and not be in bankruptcy. Some additional rules apply to business owners.
The IRS may reject your offer if they believe you can pay.
They look at your “Reasonable Collection Potential:" what they can realistically collect from your income (after basic expenses) and your assets (like home or car equity).
If you don’t qualify for an OIC, there are other programs (like installment agreements or penalty abatement) that may still bring relief.
How We Help You Through the Process
We start with a free consultation to review your situation and explain whether an Offer in Compromise (or another program) is the right solution for you.
We prepare the forms, financial analysis, and documentation the IRS requires to improve your chances of approval.
We stand between you and the IRS, taking over all communication and negotiation while fighting for the best outcome on your behalf.
Why Choose Us?
Jason Smith, EA, CTRS was honored by the American Society of Tax Problem Solvers for expertise and dedication in tax resolution.
Proven expertise in solving IRS problems.
Licensed to represent you directly before the IRS.
No call centers, just real experts who know your case.
No hidden fees, no surprises.
We’ve helped clients just like you get on the right track with the IRS.
Frequently Asked Questions
Maybe. The IRS only approves an OIC in certain situations, like those described above. To even apply, you must be up to date on all tax filings and not in bankruptcy.
That’s where we come in. With a free consultation, we’ll do an in-depth review of your finances and show you whether an OIC is realistic for you or if another program might get you relief faster.
The IRS looks at something called your Reasonable Collection Potential (RCP), basically, what they think they could realistically collect from you.
This includes:
1. The value of your assets (like your home, car, bank accounts, or other property)
2. Your future income, minus what you need for basic living expenses
In most cases, they won’t accept an OIC unless the amount you offer is at least equal to your RCP. That’s why it’s so important to have a professional prepare and present your case in the strongest way possible.
To apply, you’ll need to submit Form 656, financial forms, and supporting documents that show your income, expenses, debts, and assets.
If you own a business, the IRS will also require business financial statements and other forms to get the full picture.
An application fee and an upfront payment are required (unless you qualify for the low-income exception).
If accepted, you can pay the reduced amount in one of two ways:
Lump Sum – 5 or fewer payments within 5 months.
Periodic Payments – Monthly payments spread over 6–24 months.
The process can be complicated, and payments made during the application are generally non-refundable. That’s why we handle the paperwork, deadlines, and communication with the IRS for you, so you don’t have to worry about a single detail.
There is no magic percentage, and no honest professional can promise settlement for pennies on the dollar. The IRS expects your offer to be at least its Reasonable Collection Potential: what it could realistically collect from your assets and your future income.
Offer less than that number and the offer comes back rejected. Part of our job is calculating that number correctly before anything is filed, so you don't offer more than you have to, and you don't waste months on an offer the IRS will never take.
In recent IRS statistics, roughly a third of offers are accepted. Most rejections happen because the offer was lower than what the IRS believed it could collect, or because the taxpayer wasn't eligible to apply in the first place.
That's why we check eligibility and run the numbers before anything is filed. We won't file an offer unless the numbers actually work.
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