Offer in Compromise

Offer in Compromise

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Answer a few quick questions about your situation and see which IRS resolution options you qualify for.

  • A clear read on where you stand with the IRS
  • The resolution programs that fit your case
  • A licensed tax professional to walk you through it
See If You Qualify

Takes about two minutes. No obligation.

When you're facing mounting IRS debt that you realistically can't repay, you might feel like you're out of options. However, an Offer in Compromise (OIC) could allow you to settle your tax debt for less than the total sum you owe, and let us help you decide if this is the right option for resolving your tax debt.

Qualifying for the program comes down to a specific financial formula. The IRS calculates what they believe you can reasonably pay based on your income, expenses, and assets. If your offer reflects that accurately and your application holds up to scrutiny, the IRS will let you settle.

At Tax Network USA, we run that crucial calculation before we recommend anything. We tell you honestly what you qualify for, and then we handle the entire process on your behalf. Learn how much you could save now.

Taxpayer completing an IRS Offer in Compromise application form

Who We Help

Taxpayer meeting with a Tax Network USA professional about an Offer in Compromise

We work with clients who are ready to resolve their IRS debt but can't afford the total amount of back taxes they owe. You may be in the right place if you:

Whatever your tax debt situation, we've worked on a case like yours before. If your OIC application has been denied, we can review it and help you decide if an appeal is the right option. Contact us today and find out whether you may be eligible for an OIC.

How an OIC Can Alleviate Your IRS Debt

An OIC is a legal agreement between you and the IRS in which the IRS accepts a reduced amount as full satisfaction of your tax liability. When the IRS accepts your offer and you fulfill the payment terms, your remaining balance, including penalties and interest, is considered settled.

That could help you pay a lot less than you owe. If you owe $80,000 and the IRS accepts an offer of $12,000, you only have to pay that $12,000. The remaining $68,000 debt will not follow you, and you can move forward without the IRS debt. This is just an example. Some taxpayers save much, much more, while others see more modest savings.

Whether your offer is accepted depends entirely on if it reflects what the IRS calculates it could realistically collect from you. That calculation is called your Reasonable Collection Potential.

Navigating this complex aspect of the IRS tax system can be difficult, especially if you don't understand the nuances of the calculation. That's why working with a dedicated tax professional is the answer. Our team can guide you through the OIC process and act on your behalf.

If applicable to your situation, we can also help you determine if an offer based on doubt as to liability or effective tax administration is an option. Those settlements take into account additional criteria, not just your finances.

Why Timing Matters

Hesitation could quite literally cost you money. Each month that your IRS balance goes unresolved, penalties and interest increase that balance, and it doesn't end there. Unresolved IRS tax debt can lead to:

  • Tax liens. One may already be on file, or it may be coming. Liens attach to all of your assets, complicating property sales, transfers, and loans.
  • Bank levies. The IRS often seizes bank accounts for unpaid taxes, but applying for a settlement prevents the IRS from taking this action.
  • Wage garnishments. A very popular collection tactic, garnishments can disrupt your ability to cover your living expenses.
  • Revenue officer assignment. Rather than dealing with the IRS's computers, you have to deal with an employee whose sole focus is collecting your tax debt.

Proposing an OIC and getting it accepted takes time. From submission to a final decision, the process can take anything from six months to two years. Acting fast is the smartest strategy when it comes to protecting your peace of mind and financial future.

The IRS immediately pauses any collection activity when an OIC is under review. That means you won't get hit by IRS collection levies or any enforcement activities.

How the Tax Network USA Process Works

You don't have to handle your IRS tax alone. At Tax Network USA, our team can guide you through the OIC proposal process, giving you the best odds of getting accepted. Our team offers a personalized service, tailored to your financial situation. You can expect:

Tax professional reviewing an Offer in Compromise settlement with a client
  1. Free Consultation

    When you first contact us, we review your financial situation and IRS debt. We will then tell you honestly whether an OIC is realistic before you spend any money. If we believe that you do not qualify, we will say so upfront and talk through what your resolution alternatives are.

  2. Transcript and Financial Analysis

    Next, we start putting together your case for an OIC proposal. We pull your IRS records and calculate your Reasonable Collection Potential, which is the figure the IRS uses to evaluate your offer. You will know what your offer looks like and why the IRS is likely to accept it before we begin filing.

  3. Application Preparation

    The IRS automatically returns incomplete submissions without consideration. That means a poorly prepared application gets immediately rejected, costing you both time and money. We make sure you meet the basic eligibility requirements, such as addressing unfiled returns, even if they go back 10+ years. Then, we complete all required forms for the OIC accurately and completely on your behalf.

  4. IRS Representation

    When the forms and calculations are complete, we submit the offer to the IRS. We then handle all agency communication, document requests, and negotiations throughout the review period. Working with our team means that you don't have to speak to the IRS directly at any point.

  5. Resolution

    Once the IRS accepts an offer, you will need to follow the specific payment terms of the agreement and comply with any additional requirements. That can often be complicated if you don't understand what's happening, but we make it easy. Our team guides you through those requirements so that your settlement stays protected and you stay compliant.

    As needed, we can also help you with future compliance, including tax planning or answering your questions about specific tax problems, including cryptocurrency.

What If an OIC Is Not the Right Fit?

An Offer in Compromise is a strategic solution for many taxpayers. However, not everyone will qualify for this program. We analyze your situation and will tell you that during your first consultation. If an OIC is not the right path, you may be eligible for other resolution options.

Here's a breakdown of alternative options we may recommend:

Installment Agreement

An installment agreement is a structured monthly payment plan that lets you resolve your balance over time without enforcement action. There are different agreements available, and our team will identify the most effective path and pursue it on your behalf.

Penalty Abatement

Penalties can rack up quickly when you're in IRS debt. Whether it's IRS Failure to File or Failure to Pay Penalties, these add to the total balance you owe, and interest accumulates on top. The IRS can reduce or remove penalties under certain circumstances. We look at the penalties on your account and identify whether you're eligible for any penalty abatements to lower the amount you owe.

Currently Not Collectible (CNC) Status

In cases where repaying your IRS debt is genuinely not possible, the agency can pause collection activity until your financial status changes. This is known as being in Currently Not Collectible (CNC) status. However, the pause is only temporary. The agency frequently reviews your financial standing. When it improves, the IRS will continue with their collection activities.

Every IRS debt situation is different, so we don't use a one-size-fits-all approach. Instead, our team will work to understand your financial situation and tax debt before recommending any resolution option. Contact us today and get started with a free and confidential consultation.

Why Work With Tax Network USA

At Tax Network USA, our team of licensed tax practitioners is fully equipped to support you in proposing an OIC. Before we file, we take the time to fully understand the intricacies of your financial standing and calculate an offer that is the most likely to be accepted by the IRS.

We serve clients across the country and are federally licensed. To date, we have settled over $500 million in tax debt to the IRS, the California FTB, and other state tax authorities.

When you choose to work with us, you get a team that's:

Learn more about other tax resolution services and how our team can get you a Fresh Start with the IRS.

Frequently Asked Questions

How much will the IRS settle for in an Offer in Compromise?

There's no universal number. It depends on your individual Reasonable Collection Potential. The formula considers your disposable income and the value of your assets. A qualified tax professional can calculate what a realistic and defensible offer looks like.

How long does the Offer in Compromise process take?

Many OIC cases take between six and 12 months from submission to a final decision. However, the IRS can take up to two years to review your case, meaning that it may take much longer. While your case is in review, the agency pauses all collection activity.

What happens if the IRS rejects my offer?

If the IRS rejects your OIC, you have the right to appeal within 30 days. We can review the IRS's reasoning, address any deficiencies, and file an appeal on your behalf. If OIC is no longer suitable for your situation, we will identify alternative debt resolution options.

Can I submit an Offer in Compromise if I have unfiled tax returns?

No, you can't. The IRS requires all tax returns to be filed before it will consider an OIC application. If you have unfiled returns, you will need to complete your filing before you can move on to the proposal stage. We can assist with getting returns filed as a first step.

Does the IRS charge a fee to submit an Offer in Compromise?

Yes, the IRS charges $205 as an application fee for an Offer in Compromise. However, if you qualify for the low-income certification, you do not need to pay this.

You will also need to cover a non-refundable initial payment at the time of submission. The amount depends on the payment option you select. Our team of qualified tax professionals will walk you through the requirements before filing.

Find Out If the IRS Will Settle Your Tax Debt for Less

The only way to know whether an Offer in Compromise is a realistic option for you is to have a professional run the numbers.

Tax Network USA offers a free, confidential consultation with no obligation to move forward. We will review your situation, calculate your Reasonable Collection Potential, and give you an honest assessment of where you stand. Contact us now to find out if you could settle for less.

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