Offer in Compromise Program

If you owe the IRS but cannot afford to pay your full tax bill, either immediately or through an installment plan, you may have heard about settling your debt for less. This process is known as an Offer in Compromise (OIC). Under specific circumstances, the IRS may forgive a portion of your tax debt if you qualify.

However, not everyone is eligible, and approval rates are low. In 2017, the IRS received 62,000 OIC applications but approved only 25,000—an acceptance rate of roughly 40%.

✔️ Doubt as to Liability – You believe there is a genuine dispute over the amount owed, or you may not owe the tax at all.

✔️ Doubt as to Collectability – Your assets and income are less than your total tax liability, and the IRS determines that it is unlikely they can fully collect the debt.

✔️ Effective Tax Administration – There is no doubt you owe the tax and that the IRS can collect it, but paying in full would create a severe financial hardship, or exceptional circumstances make full collection unfair or unreasonable.

To be considered for an OIC, you must meet the following criteria:

📌 All required tax returns have been filed.
📌 You have received a bill for at least one tax debt included in the offer.
📌 You have made all required estimated tax payments for the current tax year (if applicable).
📌 Business owners with employees have made all required federal tax deposits for the current quarter.
📌 You are not currently in bankruptcy.
📌 You do not have an open audit or pending innocent spouse relief claim.
📌 Your case has not been referred to the Department of Justice.

While an OIC can significantly reduce your tax debt, qualifying can be challenging. The IRS reviews your income, assets, expenses, and ability to pay before determining eligibility. If you believe you may qualify for an Offer in Compromise, 📞Contact Us today at 720-988-0688 for a thorough evaluation of your options and professional guidance on submitting a strong application.