An Offer In Compromise to settle debt with the IRS is a way to settle for less than the full balance or eliminate the debt completely.  Before starting the process, we must ensure that you qualify.  Visit this IRS link https://irs.treasury.gov/oic_pre_qualifier/

The OIC Preparation Fee is $199 and up depending on the debt amount and work hours to prepare the OIC.  Payment plans are OK.  Payment can be made through Zelle  or Venmo App.

The fee paid directly to the IRS when the documents are ready is $186 (subject to change by the IRS, for some the fee can be waived).

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Documents needed to prepare your OIC:

Identification

IRS Letter of Debt Owed for Each Year

Bank Statements and proof of any other income

Registration information on your vehicle

Last two paycheck stubs, if you are working

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Your initial payment to the IRS will vary based on your offer and the payment option you choose:

  • Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid in five or fewer payments.

  • Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. 

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Understand the process

While your offer is being evaluated:

  • Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);

  • A Notice of Federal Tax Lien may be filed;

  • Other collection activities are suspended;

  • The legal assessment and collection period is extended;

  • Make all required payments associated with your offer;

  • You are not required to make payments on an existing installment agreement; and

  • Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

If your offer is accepted

  • You must meet all the Offer Terms listed in Section 7 of Form 656, including filing all required tax returns and making all payments;

  • Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;

  • Federal tax liens are not released until your offer terms are satisfied; and

  • Certain offer information is available for public review by requesting a copy of a public inspection file.

If your offer is rejected

  • You may appeal a rejection within 30 days using the IRS Independent Office of Appeals