IRS Offer in Compromise (OIC)

Settle Your IRS Tax Debt

Struggling with IRS tax debt? An Offer in Compromise (OIC) may allow you to settle your IRS balance for less than you owe—or even eliminate it completely. At Set Free Tax & Professional Services, we guide you step by step through the OIC process to increase your chances of approval. With 20+ years of experience serving clients in Los Angeles, Dallas, and nationwide, we’ve helped taxpayers reduce overwhelming IRS debt and get back on track financially.

👉 Check if you qualify with the IRS Pre-Qualifier Tool: IRS OIC Pre-Qualifier

💰 Offer in Compromise Fees

  • OIC Preparation Fee: Starts at $199+ (depending on your debt amount and preparation time).

  • Flexible Payments: We accept Zelle, Venmo, or Credit/Debit. Payment plans are available.

  • IRS Application Fee: Currently $186 (paid directly to the IRS when your documents are submitted; this fee may be waived for low-income applicants and is subject to IRS changes).

📑 Documents Needed to Apply

To prepare your Offer in Compromise package, you’ll need:

  • Government-issued Identification

  • IRS Letters of Debt Owed (for each tax year)

  • Bank Statements & proof of all income

  • Vehicle registration information

  • Last two paycheck stubs (if employed)

⚖️ Payment Options with the IRS

When submitting an OIC, your initial payment depends on your offer type:

1. Lump Sum Cash Offer

  • Pay 20% upfront with your application.

  • If the IRS accepts, the remaining balance is due in five or fewer payments.

2. Periodic Payment Offer

  • Make an initial payment with your application.

  • Continue monthly payments while the IRS reviews your case.

  • If accepted, keep making monthly payments until the settlement is complete.

Low-Income Certification

If you qualify under IRS low-income guidelines, you may:

  • Waive the $186 application fee

  • Skip the initial payment

  • Avoid monthly installments during IRS review

🔎 What to Expect During the OIC Process

While your OIC is being reviewed:

  • Payments you submit are applied to your tax debt (non-refundable).

  • The IRS may file a Notice of Federal Tax Lien.

  • Collection activities are temporarily suspended.

  • The IRS has two years to decide; if no decision is made, your OIC is automatically accepted.

✅ If Your Offer is Accepted

  • You must follow all OIC Terms (Form 656, Section 7).

  • Any tax refunds due in the year your OIC is accepted will be applied to your debt.

  • IRS tax liens are released once your OIC terms are fully satisfied.

❌ If Your Offer is Rejected

  • You can appeal within 30 days through the IRS Independent Office of Appeals.

📍 Why Work with Set Free Tax & Professional Services?

  • 20+ years helping taxpayers in Los Angeles, Dallas, and across the U.S.

  • Expertise in IRS negotiations & debt relief

  • Affordable, flexible payment options

  • Year-round support—not just tax season

👉 Don’t face the IRS alone. Call/Text 562-646-6185 today for a consultation on your IRS Offer in Compromise.