Offer in Compromise

An Offer in Compromise (OIC) lets you settle your federal tax debt for less than the full amount you owe. It is the program behind the headline success stories — six-figure balances resolved for a fraction of the total — but it is also one of the hardest programs to get approved without skilled representation.

The IRS accepts an OIC only when it believes the amount offered is the most it can expect to collect within a reasonable period. Proving that takes a precise, well-documented financial picture and a thorough understanding of how the IRS calculates your “reasonable collection potential.” That is exactly where most self-filed offers fall apart, and exactly where we focus.

How an Offer in Compromise works

• We analyze your full financial situation: income, expenses, assets, and equity.
• We determine the offer amount the IRS is most likely to accept under its own formula.
• We prepare and file Form 656 and the supporting 433-A (OIC) financial disclosure.
• We negotiate directly with the IRS examiner and respond to any requests or pushback.
• If accepted, you pay the agreed amount and the remaining balance is forgiven.

Why representation changes the outcome

• The offer amount is calculated, not guessed — underbidding gets rejected, overbidding costs you money.
• Financial disclosures are prepared correctly the first time, avoiding months of delay.
• Allowable-expense rules are applied in your favor wherever the law permits.
• An attorney can escalate or appeal a rejection rather than starting over.

Who this is for

An OIC is the right fit if you genuinely cannot pay your full tax debt without serious financial hardship, and your income and assets support a settlement. If you can realistically pay over time, an Installment Agreement is usually the better path — and we'll tell you honestly which one fits.