An Offer in Compromise lets qualifying taxpayers settle a tax debt for less than the full amount owed. It is the program behind most "settle for pennies on the dollar" advertising—and the reality is more disciplined than the ads suggest. The IRS applies strict financial tests, and most offers that fail do so because they were unrealistic or incomplete. We assess whether an OIC is genuinely viable for you before you invest time and fees.
Request a consultationAn offer can be based on doubt as to collectibility, doubt as to liability, or effective tax administration. Most individual cases turn on collectibility—whether the IRS can reasonably expect to collect the full amount given your income, assets, and allowable expenses. Knowing which ground applies determines the entire approach.
The IRS calculates your reasonable collection potential from the equity in your assets plus a multiple of your monthly disposable income after allowable expenses. Understanding that formula before you file is the difference between an offer amount the IRS will consider and one it rejects out of hand. We model the numbers first.
A strong offer includes complete financial disclosures, supporting documentation, the required forms, and a coherent narrative explaining your circumstances. Incomplete packages are frequently returned without any review of the merits, so thoroughness at the outset protects both your money and your timeline.
Collection is generally suspended while the IRS processes an offer, subject to certain exceptions, and you must stay current on filings and payments throughout. We explain how the timeline works, what happens if an offer is rejected—including appeal rights—and what to expect during the review.
Sometimes the honest advice is that an offer will not succeed, and an installment agreement, penalty relief, or currently-not-collectible status is the better route. We would rather tell you that up front than take a fee for a submission destined to fail.
No. The IRS accepts a minority of offers, and eligibility depends on your income, assets, and allowable expenses. If the IRS believes it can collect the full balance over time, it will not accept a reduced offer. An honest evaluation up front saves wasted fees.
It calculates your reasonable collection potential—generally the equity in your assets plus your future disposable income over a set number of months. An offer at or above that figure has a realistic chance; one below it usually does not.
It varies, but reviews commonly take several months to a year. Collection is generally paused while the offer is under consideration, provided you stay compliant with filing and payment requirements during that time.
You generally have the right to appeal a rejection within a set window. A rejection is not the end of the road—it often points to a more workable alternative, such as an installment agreement or currently-not-collectible status.
Strategic plans to address balances, penalties, and compliance so you can move forward with clarity.
Learn more →Navigate notices, payment alternatives, and collection timelines with experienced support.
Learn more →Understand filing releases, subordination, and options when the IRS or state takes enforced collection steps.
Learn more →