An Offer in Compromise (OIC) is an IRS program that may allow certain eligible taxpayers to settle their federal tax debt for less than the full amount owed.

But an Offer in Compromise isn't right for everyone.

The IRS evaluates factors such as a taxpayer's ability to pay, income, expenses, assets, and other applicable circumstances.

At ProTax Advantage, we help taxpayers understand whether an Offer in Compromise may be appropriate and guide them through the process.

The IRS generally considers whether a taxpayer can fully pay the liability through available assets and income within the applicable collection period.

The IRS may evaluate:

• Assets 
• Income 
• Monthly expenses 
• Equity 
• Ability to pay 
• Future income potential 
• Filing and payment compliance 
• Other relevant financial circumstances 

An OIC requires detailed financial information and supporting documentation.

Eligibility is determined by the IRS based on applicable requirements.

In general, taxpayers seeking an Offer in Compromise typically need to address filing and payment compliance requirements and demonstrate that they meet the applicable criteria.

Simply owing a large amount of tax doesn't automatically mean you qualify.

We review your IRS records, tax debt, filing history, income, expenses, and assets.

We evaluate the financial information to determine whether pursuing an Offer in Compromise may make sense.

We help organize the necessary financial information and documentation for the application.

When authorized, we communicate with the IRS throughout the process.

An unsuccessful OIC doesn't necessarily mean you have no options.

Depending on your circumstances, alternatives may include:

• Installment Agreements 
• Currently Not Collectible status 
• Other collection alternatives 
• Penalty relief 
• Filing compliance strategies 

The goal is to find the appropriate solution, not simply the most popular one.

No. The IRS has specific requirements for an Offer in Compromise.

The IRS considers the taxpayer's financial circumstances and ability to pay under applicable rules.

No. The IRS makes the final determination.

Don't rely on internet calculators or assumptions about your eligibility.

Schedule a confidential consultation with Tammy Graham, MSA, EA, to discuss your circumstances and potential resolution options.