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    Tax Relief Services

    Offer In Compromise

    Settle your tax debt for less than what you owe through IRS settlement programs.

    An Offer in Compromise is the IRS program that allows qualifying taxpayers to settle their tax debt for less than the full amount owed. It is real, it is written into the tax code, and it is also the most misunderstood program in tax resolution. The IRS does not accept offers because you ask nicely or because a company promised you a settlement on the radio. It accepts offers when the numbers, prepared and presented correctly, show that the offer is the most the IRS can reasonably expect to collect.

    That calculation is called reasonable collection potential. It is built from your monthly disposable income and the equity in what you own, measured under IRS rules that allow specific living expenses most people do not know to claim. Two taxpayers with the same debt can get completely different results based purely on how well their financials are prepared.

    Our enrolled agents have prepared offers since 2012. We tell you honestly whether you are a candidate before you spend a dollar on the process, because a rejected offer costs months and money. If an offer is your path, we build the strongest financial case the rules allow and negotiate it through acceptance. If it is not, we tell you that too, and show you what will actually work.

    Is this your situation?

    • You owe more than you could realistically pay in full before the collection clock runs out
    • Your income barely covers necessary living expenses
    • You have little or no equity in property after loans
    • A tax relief company quoted you a settlement without ever reviewing your finances
    • You tried an offer yourself and the IRS returned or rejected it

    How We Resolve It

    1. 1

      Qualification analysis first

      We run your real numbers through the IRS formula before anything is filed. You will know your realistic offer range and your odds before committing.

    2. 2

      Build the financial case

      We prepare Form 656 and the required financial disclosures, documenting every allowable expense so your reasonable collection potential is as low as the rules honestly support.

    3. 3

      File and defend

      We submit the offer, manage every IRS request while it is under review, and keep you protected from levies during the process.

    4. 4

      Negotiate

      If the examiner pushes back, we respond with documentation and, when needed, take the case to appeals.

    5. 5

      Acceptance and fresh start

      Once accepted and paid, we confirm the compromise on your transcripts and make sure you understand the compliance terms that keep it in force.

    How much will the IRS accept?

    The IRS accepts what your finances support, not a standard percentage. The formula takes your monthly income minus allowed living expenses, multiplies it over a set number of months, and adds the net equity in your assets. If that total is less than your debt, an offer becomes viable, whether that number is five hundred dollars or fifty thousand. This is why honest financial preparation matters more than negotiation theater, and why we calculate your number before you commit to anything. You can get an early estimate with our free tax relief calculator.

    What to expect: timeline and life during review

    A well prepared offer typically takes six months to a year from filing to decision. While the offer is under review, IRS levy action on the debt generally pauses, which for many clients is the first quiet their finances have had in years. You must stay current on filing and payments during review and for five years after acceptance; a compromise can be defaulted if you fall out of compliance, and we keep you on track through that window.

    How We Help

    • Honest qualification analysis before you spend on the process
    • Every allowable expense documented to lower your offer amount
    • Levy protection while the offer is under review
    • Rejections answered with appeals, not abandonment
    • Free consultation with a licensed enrolled agent

    Frequently Asked Questions

    The process takes months, requires full financial disclosure, and extends the IRS collection clock while under review. A rejected offer means you disclosed everything and gained nothing. That is why we qualify you honestly first, so you only file when the numbers genuinely support acceptance.

    There is no fixed percentage. The IRS accepts your reasonable collection potential: monthly disposable income over a set period plus asset equity. For some taxpayers that is a small fraction of the debt; for others an offer is not viable at all. The calculation, done correctly, is the answer.

    The IRS does not report offers to credit bureaus, so applying does not directly affect your score. A federal tax lien filed before or during the process is a public record, though, and resolving the debt through an accepted offer is a step toward clearing it.

    Yes, the forms are public. The risk is not the paperwork, it is the valuation rules. Most self-filed offers fail on expense standards and asset valuation, and each attempt costs months. Professional preparation exists to get the number and the documentation right the first time.

    You have appeal rights, and appeals overturns or improves many rejections when the case is documented well. If the offer truly cannot succeed, the financial work is not wasted; it becomes the basis for an installment agreement or hardship status instead.

    Get Help Now

    Speak with a licensed tax professional about your offer in compromise case. Book a no-obligation tax resolution case evaluation.

    (331) 215-7663Book a No-Obligation Tax Resolution Case Evaluation
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    BBB Accredited A+ Rating