Offer in Compromise

  1. Tax Negotiation
  2. Offer in Compromise

Offer in Compromise

Do you need tax debt help? We can help with IRS debt, as well as state taxes, by setting up an Offer in Compromise. Offer In Compromise (OIC) is a mutually beneficial agreement between the taxpayer and the government to reduce your tax obligation. When shown there is no ability to collect the tax in full, tax agencies agree to settle your debt for pennies on the dollar. At Tax Solutions Group, we average a 96% reduction. Once the OIC amount is paid in full, any tax lien recorded is released, helping to restore your credit.

The IRS or state requires that you remain current in your tax filings and payments for the next 5 years as a condition of the acceptance, which Tax Solutions Group works with you to maintain (we don’t like to see our hard work go to waste). WIN-WIN.

Realize the Offer-In-Compromise program is not a “right” but a request. Taxpayers’ hardship must be backed with current income and expense analysis. Receipts must show current payments for living and/or business expenses. In addition, the OIC must be submitted with 100% accuracy to assure the offer is accepted. When done correctly, the Offer In Compromise program allows you to obtain a “clean slate” and get a fresh start. We know how to get an offer in compromise approved and set you up for future success. Contact us for tax debt help today!


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FAQs for Offer in Compromise

An offer in compromise is an agreement between a taxpayer and the IRS (Internal Revenue Service). The IRS assesses the taxpayer’s ability to pay, then they settle the taxpayer’s liabilities for less than the full amount owed.

IRS collections are put on hold while the compromise is investigated. After an offer in compromise is complete, the IRS releases all tax liens filed against you, improving your credit score.

The IRS will assess a taxpayer’s ability to pay and issue an Offer in Compromise. Our clients save 96% on average. Upon accepting an Offer in Compromise, the IRS typically requires the taxpayer to pay a portion of the Offer in Compromise amount up front, usually 20% of the offer amount, as well as an application processing fee of about $200.

The qualifying criteria for Offer in Compromise is strict. There are three situations the IRS will consider for an offer in compromise:

  • Liability Doubts
    There’s a genuine dispute about whether you owe and/or the amount you owe.
  • Collectability Doubts
    The IRS believes your tax debt may not be fully collectible due to lowered assets and income.
  • Effective Tax Administration
    A situation where paying in full would create a financial hardship. This may also apply if there are exceptional circumstances that would make it unfair or inequitable for the IRS to collect the full amount.

The offer in compromise process typically takes about 6-8 months. However, if your Offer in Compromise is rejected, and you appeal the rejection to the IRS Office of Appeals, it can extend the processing time to about 12-24 months.

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