One of the least understood ways to obtain relief from onerous tax burdens is the Offer in Compromise (OIC). An offer in compromise allows you to settle your debt for less than the full amount owed. You have probably seen many TV commercials offering to “pay off your IRS debt for pennies on the dollar.” These ads have probably led you to believe that this option is available to everyone at any time, but the truth is that there are many qualifications that must be met before the IRS will accept an OIC.

Only about 40% of the Offers in Compromise submitted to the IRS are eventually accepted. Most OIC offers are rejected on the first attempt due to technical errors in the paperwork. If this happens, a case can appeal the rejection within 30 days of receiving the rejection notice.

Generally, the IRS will accept an OIC when the amount offered represents the most that they can reasonably expect to collect within the statue of limitations or some reasonable time frame. If you have the ability to pay the amount owed through other means such as installment agreements, you will not be accepted for an OIC.

Our tax professionals have handled thousands of cases with the IRS and have the expertise and know-how to file the Offer in Comprise correctly. When you call for your free initial consultation, we will ask you a few questions about your financial situation that will help us determine your likelihood of qualifying for an Offer in Compromise or any other type of tax debt relief.