Offers in Compromise (OIC)

Experienced OIC attorneys in Dallas and Houston, TX. An Offer in Compromise allows qualified taxpayers to settle IRS debt for less than the full amount due when collection potential is limited. The key to success is a realistic analysis of Reasonable Collection Potential (RCP), followed by a complete, well‑documented filing that tells your financial story clearly. We evaluate eligibility up front, prepare the package, and advocate through each step so your offer receives fair consideration.

Who Qualifies for an OIC?

• Compliance: All required returns are filed and you are current on estimates/withholding.
• Limited equity: Assets, after exemptions and quick‑sale discounts, do not yield enough to pay the debt.
• Cash flow: After necessary living expenses, little to no income remains to make meaningful monthly payments.

Our OIC Process

• Pull transcripts, review notices, and confirm filing/payment compliance.
• Calculate RCP and choose the right offer type—lump‑sum or periodic payment.
• Prepare Form 656 and financials (433‑A/B), with documentation that supports each entry.
• Communicate with the IRS examiner, respond to information requests, and negotiate to a decision.

What to Expect

OIC review typically takes several months and can extend longer depending on the IRS backlog and case complexity. While an offer is pending, compliance—timely filing and deposits—is essential. If accepted, you must remain compliant for a period after payment; otherwise, the IRS can default the offer. When appropriate, we also coordinate requests for penalty relief or installment agreements to bridge the timeline until an offer decision is reached.

FAQs

Will tax liens be released? Federal tax liens are generally released after the offer is paid in full and you remain compliant; in some cases, withdrawals can be requested under IRS policy.

Can a business qualify? Yes. Businesses can qualify when they meet the same RCP criteria and compliance requirements.