A fantastic experience
Working with Luke at Choice Tax service has been a fantastic experience. His commitment to clear communication is what truly sets him apart. I was always impressed by his responsiveness to my questions.
CarlaOffer in Compromise
Get your FREE expert consultation.
What is an offer in compromise?
An IRS offer in compromise (OIC) is an agreement that allows certain taxpayers to resolve their tax debt for less than the full amount owed. The IRS generally only accepts an offer when it believes the amount reflects the most it could reasonably collect from you. Not every taxpayer who owes the IRS qualifies for an offer in compromise, and not every offer submitted is accepted. The IRS calculates a "reasonable collection potential" -- the amount it believes it could otherwise collect from your income and assets -- before considering acceptance.
Choice Tax Relief evaluates your financial situation to determine whether an offer in compromise is a realistic option, and if so, we calculate an offer amount designed to withstand IRS scrutiny. We prepare the required forms and documentation, submit your offer, and represent you throughout the IRS's investigation. If an offer in compromise is not the right fit for your situation, we also evaluate alternatives such as an installment agreement, currently-not-collectible status, or penalty abatement, so you pursue the resolution that actually makes sense for you.
Who Qualifies for an IRS Offer in Compromise?
You may qualify for an offer in compromise if:
- You owe more in back taxes than you could reasonably pay in full, now or through an installment agreement, before the collection statute expires.
- You have filed — or are prepared to file — all legally required tax returns.
- You are current on estimated tax payments or withholding for the current year.
- You are not currently in an open bankruptcy proceeding.
- Your assets and future income, as calculated under IRS financial standards, fall short of your total tax liability.
- You can document a genuine dispute as to whether you actually owe the tax (doubt as to liability).
- Full payment would create economic hardship or would be unfair or inequitable given your circumstances (effective tax administration).
Meeting these general conditions does not guarantee the IRS will accept your offer. The IRS also considers your equity in real estate, vehicles, retirement accounts, and other assets, along with your allowable monthly expenses, when calculating what it believes you can pay. Our team reviews your full financial picture before recommending an offer in compromise, so you understand realistically whether this path -- or another resolution -- gives you the best chance of success.
How Our Process Works
1
2
3
1
Investigate Your Case
We obtain your IRS account transcripts to confirm what you owe, which returns have been filed, and how much time the IRS has left to collect. We also identify compliance issues, prior agreements, and other factors that could affect whether an offer in compromise is realistic for your situation.
2
Calculate and Prepare Your Offer
We review your income, expenses, assets, and equity to calculate a reasonable collection potential and determine whether an offer in compromise -- or another resolution -- gives you the strongest outcome. We then prepare Form 656, the required financial statements, and supporting documentation.
3
Negotiate and Finalize Your Resolution
We submit your offer and represent you throughout the IRS's investigation, responding to requests for additional information and negotiating on your behalf. If accepted, we confirm the terms in writing and explain the requirements needed to keep it in good standing.
866-8000-TAX
Speak to Our People Today. We’ll hear your story.
The Best Tax Relief Attorney & CPA In the Business
Logan and Greg lead a team of experienced tax professionals and support staff to achieve the best possible outcomes for Choice Tax Relief's clients.
Our Clients WIN
Not the "money up front" approach
I interacted with 4 other providers before finding Choice Tax Relief. All the others were offering a "let's get your money up front, then see how this all plays out for you" approach.
Robert
Can't say enough good things
I can't say enough good things about Choice Tax Relief! A special thank-you to Nathan and Luke for their help and professionalism throughout the entire process.
Sara
Stellar company and staff
I highly recommend Choice Tax Relief. Tim & Luke were amazing and professional in getting my taxes done and turned in for multiple years. I will be using them for all my tax filings now and in the future. Stellar company and staff!
JackieOffer in Compromise FAQ's
An offer in compromise is a formal agreement in which the IRS accepts less than the full amount you owe to resolve your tax debt. The IRS generally only accepts an offer when it believes the amount reflects the most it could reasonably collect from you, considering your income, expenses, and asset equity.
Advertising that promises to settle "pennies on the dollar" oversimplifies a program with strict eligibility requirements. Only a minority of applicants qualify, and the accepted amount depends entirely on your individual financial profile -- not a fixed percentage. We evaluate your numbers honestly before recommending this path.
The IRS calculates your "reasonable collection potential" -- generally your net realizable equity in assets plus your future income over a set number of months -- based on national and local expense standards, which may not match your actual spending.
Most applicants must submit a $205 application fee and an initial payment with Form 656, though taxpayers who qualify under the IRS's Low Income Certification guidelines may be exempt from both. The payment option you choose -- lump sum or periodic payment -- affects how much you must submit upfront.
The IRS generally suspends active collection while a timely-filed offer is pending, and during a limited period after an offer is returned or rejected while you exercise appeal rights. This is not an absolute guarantee, and certain collection actions can continue in specific circumstances.
You may appeal a rejection through the IRS Office of Appeals within 30 days. We review the IRS's calculation for errors, gather additional documentation if needed, and pursue the appeal or, if appropriate, evaluate other resolutions such as an installment agreement or currently-not-collectible status.
Yes. The IRS generally will not consider an offer in compromise unless you have filed all legally required tax returns and are making any required estimated tax payments or withholding adjustments for the current year.
Yes, though business offers involving payroll tax debt receive additional scrutiny, and the IRS may also examine whether responsible individuals should be personally assessed for unpaid trust fund taxes.
An accepted offer in compromise generally resolves the total liability for the tax years covered -- including the assessed penalties and interest on those years -- for the agreed-upon amount.
You must comply with all filing and payment terms of the agreement for five years after acceptance, including staying current on all tax obligations. Failing to comply can cause the IRS to default the agreement and reinstate the full original balance.
Yes. The IRS is not required to withdraw or refrain from filing a Notice of Federal Tax Lien simply because an offer is pending or has been accepted, although some taxpayers may request lien withdrawal after fully satisfying the terms of an accepted offer.
Processing time varies, but it commonly takes several months to over a year depending on the complexity of your case and the IRS's current workload. We monitor your case status and respond promptly to any IRS requests for additional information.
Not necessarily. Depending on your circumstances, an installment agreement, currently-not-collectible status, or penalty abatement may provide a better outcome. We evaluate the available alternatives before recommending an offer in compromise.
Other Tax Relief Services
Installment Agreement Negotiation
Need more time to pay? We negotiate an installment agreement with the IRS calculated for an affordable, sustainable monthly payment based on your financial circumstances.
Read more >
Currently Not Collectible Status
If paying the IRS would prevent you from meeting necessary living expenses, the IRS may temporarily suspend active collection. We prepare and present the financial case required to demonstrate hardship.
Read more >
IRS Levy Release
A bank levy or wage levy can create an immediate financial crisis. We communicate with the IRS, evaluate available collection alternatives, and work to obtain a levy release when the facts support one.
Read more >
Penalty Abatement
IRS penalties can substantially increase a tax balance. We determine whether you may qualify for relief based on compliance history, reasonable cause, or another applicable IRS procedure.
Read more >Get IRS
Tax Relief
f you need immediate relief from IRS collections, call us today. You’ll get affordable, transparent pricing and a clear plan for the best possible tax debt settlement. Let the most trusted tax relief team lift the weight off your shoulders.