If you owe the IRS more than you can comfortably pay, you’ve probably heard of the Offer in Compromise (OIC). This is the program that lets you settle for less than you owe. What you may not know is that the IRS accepts only about one in three offers, and most rejections come down to the same issue: the taxpayer could actually pay the debt over time, so the IRS says no.
How the IRS decides. Before accepting any settlement, the IRS calculates your Reasonable Collection Potential. This is essentially your available income over time plus the equity in your assets. If that number is higher than what you’re offering, the offer is rejected. The IRS will then expect you to pay through an installment agreement instead.
When an Offer in Compromise (OIC) makes sense:
When an installment agreement is the smarter move:
We value honesty from the first conversation. Our process begins with a $1,500 research and Power of Attorney fee. This is an investment in your case: the entire amount is credited directly against any future negotiation fees, provided your engagement is paid within three months of that initial payment date. We believe in clear expectations, not surprises.
Our honest approach. We run your numbers the same way the IRS does. If an Offer in Compromise (OIC) is realistic, we’ll build the strongest possible case for it. If it isn’t, we’ll tell you, and we’ll get you the installment agreement or other relief that actually solves the problem. No false promises, no wasted fees.
Not sure which path fits? Call us at 804-359-5221 for a straight answer.