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Offer in Compromise

Settle your IRS tax debt for less than the full amount owed through effective negotiation with an Offer in Compromise.

Find Out If You Qualify for Tax Relief in 4 Easy Steps!

Check Your Eligibility for Tax Settlement Today!

What is Offer in Compromise?

An Offer in Compromise (OIC) is an IRS program that allows taxpayers to settle their tax liability for less than the full amount owed, offering relief for those experiencing financial hardship or economic hardship. The IRS evaluates each application based on the taxpayer's financial situation, including income, expenses, and asset equity, to determine a reasonable collection potential (RCP). Payment options for settling the debt include lump sum payment plans and installment agreements.

Expert Tax Debt Services for Offer in Compromise IRS Assistance

Take advantage of our four decades of collective experience in the tax debt relief industry, offering top-notch support for your Offer in Compromise IRS application. We ensure every detail is perfectly in place to give you the best chance of success.

Don’t let your filing go unheard – with our five-star-rated service.

Our tax debt attorneys make sure to have your first Offer In Compromise filing your last. Here’s how:

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• We’ll conduct a thorough review of your monthly income, expenses, and asset equity to find the most feasible offer amount just for you.

• Choose between a lump sum payment or a structured payment plan, customized to your financial condition, to efficiently settle your tax debt.

• Get professional assistance with the meticulous preparation of your Offer in Compromise Form 656-B, doubling your chances of acceptance.

Legalize your offer completely with the best tax lawyers so the IRS has no choice but to accept, protecting your financial interests.

Offer in Compromise Success Stories

$1,500

Offer Amount Accepted

Total Debt: $60,000

Debra K.

$100

Offer Amount Accepted

Total Debt: $57,000

Ian M.

$1,000

Offer Amount Accepted

Total Debt: $88,000

Nicholas G.

$100

Offer Amount Accepted

Total Debt: $83,000

Eryka A.

$80

Offer Amount Accepted

Total Debt: $32,000

Deseree W.

$1,074

Offer Amount Accepted

Total Debt: $38,000

Dennis J.

$2,500

Offer Amount Accepted

Total Debt: $43,000

Anthony C.

$25

Offer Amount Accepted

Total Debt: $40,000

Tommy B.

$21,000

Offer Amount Accepted

Total Debt: $302,401

Valerie B.

$60,300

Offer Amount Accepted

Total Debt: $1,622,404

Kenneth J.

$157

Offer Amount Accepted

Total Debt: $10,000

Chris A.

$168

Offer Amount Accepted

Total Debt: $30,000

Heather N.

What are the specific qualifications for Offer in Compromise?

• If the IRS has incorrectly assessed your tax liability, meaning there is a genuine dispute over the correctness of the amount owed, then you’re eligible for Doubt as to Liability.

• If you are unable to pay the full amount of your tax debts, indicating that your assets and income are insufficient to cover the debt, then you’re eligible under Doubt as to Collectibility.

• If paying the tax debts would cause significant financial hardship or be considered an exceptional circumstance, such as leaving you unable to cover basic living expenses, then you’re eligible under Effective Tax Administration.

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• Applicants must submit Form 656-B along with a nonrefundable application fee and initial payment. This program provides a viable solution for those under exceptional circumstances.

To fully understand the financial requirements and ensure eligibility for an Offer in Compromise, please refer to the detailed Offer in Compromise Booklet or using offer in compromise pre qualifier tool.

Call today for a free tax debt consultation and secure an IRS compromise offer that provides significant tax debt relief, perfectly tailored to your financial situation. Don’t wait—take control of your finances today!

How a Reliable Tax Service Simplifies Tax Debt

We offer expert relief to help you stop garnishments and reclaim your financial stability.

Why Do You Need a Professional Tax Attorney?

The IRS OIC process involves complex detailed documentation and strict eligibility requirements that can easily overwhelm the unprepared. At J. David Tax Law, our expert tax attorneys ensure that all financial statements are carefully prepared, avoiding common issues like incomplete documentation or insufficient proof of financial hardship—key factors that lead to application delays or rejections. Many applicants also struggle with understanding their reasonable collection potential, a crucial calculation that, if underestimated, can cause the IRS to reject the compromise offer.

“Furthermore, the process is inherently lengthy, taking 6 to 12 months, during which any missteps or missed IRS compliance checks can extend delays or worsen financial strains.”

Given that nearly 40% of applications are rejected, the expertise of our tax specialist becomes indispensable to navigate these complexities and protect your financial privacy, doubling your chances of a successful negotiation with the IRS.

What Are Your Next Steps If Declined for an Offer in Compromise?

If a person does not qualify for an Offer in Compromise (OIC) with a tax authority, there are several alternative options to consider for managing tax liability. Here are some other avenues to explore:

Payment Plans / Installment Agreements

Most tax authorities, including the IRS and state agencies like the California Franchise Tax Board, offer payment plans that allow taxpayers to pay their debt in smaller, more

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manageable installments. This can provide relief without requiring the full payment upfront.

Temporary Delay of Collection

If you’re facing temporary financial hardship, you might request the tax authority to delay collection until your financial situation improves. This is sometimes a permanent solution, but it can also provide temporary relief from collection activities.

Penalty Abatement

If certain criteria are met, such as reasonable cause or first-time penalty abatement, taxpayers might qualify for relief from penalties that have been added to their tax debt.

Appealing a Decision

If you contest the tax liability or the denial of your Offer in Compromise (OIC), you have the opportunity to appeal the period. This involves a formal procedure where you articulate your reasons for disputing

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the assessment or rejection, considering any exceptional circumstances or legal assessment issues that might impact the final decision.

Checking for Hardship Provisions

Some jurisdictions may have specific hardship provisions that do not fit within the typical framework of an OIC but could offer relief based on the taxpayer’s financial situation.

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It’s important to stay proactive and communicate openly with the tax authority about your situation.

Frequently Asked Questions

Your Tax Relief Questions, Answered

What is an Offer in Compromise and how does it work?

An Offer in Compromise (OIC) allows taxpayers to settle their federal tax liabilities for less than the full amount they owe. It’s intended for cases where paying the full amount would create a financial hardship. The IRS considers the taxpayer’s income, expenses, and asset equity when determining eligibility.

Who is eligible to apply for an Offer in Compromise?

To qualify for an OIC, individuals must meet strict requirements, including being up-to-date with all filing and payment requirements and not being in an open bankruptcy proceeding. The IRS also evaluates the taxpayer’s ability to pay, income, expenses, and asset equity.

What are the benefits of an Offer in Compromise?

The primary benefit of an OIC is the ability to clear your outstanding tax debts for less than the full amount owed, potentially providing significant financial relief. Successful applicants can avoid collection activities like liens and garnishments, and may begin to repair their financial health.

How much should I offer in compromise to the IRS?

The amount to offer in an OIC should realistically reflect your reasonable collection potential (RCP), which includes the value of your assets and the amount the IRS could collect from your future income within a reasonable period. Using the IRS pre-qualifier tool can help determine an appropriate offer based on your financial situation.

How long does the offer in compromise process take?

The processing time for an OIC can vary, typically taking anywhere from 6 to 12 months. This duration includes the time needed for the IRS to evaluate your offer, your financial situation, and the confirmation of compliance with all tax laws.

Are there any alternatives to an Offer in Compromise for resolving tax debt?

Yes, alternatives include installment agreements, requesting a temporary delay of collection due to financial hardship, or possibly using penalty abatement if you qualify based on reasonable cause. Each alternative has specific requirements and outcomes, often depending on the individual’s unique financial condition.

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We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.

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