Tax Attorneys to Help You Get Relief & Stop IRS Collections

Offer in Compromise Attorney | Settle IRS Tax Debt for Less

An Offer in Compromise (OIC) is an IRS tax relief programs that allow eligible taxpayers to settle their balance for less than they owe. You may qualify for an OIC if paying your full tax debt would cause you financial hardship. You may also qualify if you believe you were unfairly assessed or if there is an exceptional reason where paying the tax debt would create an unfair hardship.

But getting approved for an offer can be difficult, and you need the right expertise on your side. The W Tax Group is an attorney-led company with the experience necessary to help you get an offer in compromise accepted – and if that’s not the right option for you, we’ll help you find a resolution that fits your situation.

You’re in the Right Place If…

Wondering if you should consider looking into an IRS settlement. Here are signs you’re in the right place.

• You owe the IRS a large amount of money you can’t realistically pay.
• You can’t afford to make monthly payments.
• You’ve seen ads for paying off your IRS debt with “pennies on the dollar,” and you want to know if that’s possible.
• The IRS rejected a prior OIC you submitted, but you still can’t pay the debt in full.
• You’re not sure if an OIC or an installment agreement is the best financial decision for your future.
• You want to know if you qualify before paying any application fees.

What Is an IRS Offer in Compromise?

An offer in compromise is an agreement with the IRS to settle the tax liabilities you owe for less than the full balance. Usually, you need to pay the offered amount in a lump sum or, in some cases, over 24 months.

Not everyone qualifies for an OIC. The IRS looks at your financial situation, including your income, ability to pay your taxes in full, equity in your assets, and your other debts and expenses. All this is to determine if you can realistically pay your tax debt in full. 

Our offer-in-compromise attorney can help you present a clear case to the IRS by reviewing your finances and taxes and preparing a reasonable offer. 

Three Different Ways to Settle Tax Debt

You can settle your IRS debt for less than you owe if you qualify for one of these three types of OIC.

• Doubt as to Collectability: The Doubt as to Collectability OIC is the most common, allowing those who cannot afford to pay both tax debt and living expenses without facing economic hardship to settle their debt. 
• Doubt as to Liability: A Doubt as to Liability. OIC demonstrates that you may not legitimately owe the taxes. It’s applicable when there’s a genuine dispute regarding the existence of the exact amount of the tax debt under the law. 
• Effective Tax Administration: In an Effective Tax Administration OIC, the IRS agrees to reduce the debt owed to be equitable. You don’t have to meet low-income qualifications or have doubts about the debt owed. Instead, the IRS deems it would be unfair or unreasonable to enforce the tax law to make you pay this debt, given your special circumstances.

Don’t worry – you don’t need to understand the differences. We’ll use our experience to find the best match for your tax situation.

How Does the IRS Decide if You Qualify for OIC

The IRS doesn’t care what you think you can afford. Instead, it uses a formula called reasonable collection potential (RCP) to determine if it’s reasonable to expect to receive payment from you in full. This includes a thorough review of your income, expenses, and net equity to determine whether your disposable income is sufficient to pay your tax debt. 

Your unique financial situation is ultimately the differentiating factor in approval and denial, but extenuating circumstances can come into play, which is why you need experienced help.

Our IRS tax settlement attorney can help create a clear OIC that’s based on all allowable and actual expenses and apply every nuance of the formula available to your case.

Case Study – Saving a Client 90% of Their Tax Bill

While IRS offers in compromises tend to be the most commonly talked about, there are state offers as well — even for business trust fund taxes. Look at how we cut this client’s tax bill by 90%.

The client approached us with a staggering bill – she owed over $1 million in sales tax and hadn’t paid in five years. However, she was living with multiple sclerosis and had no ability to repay the debt. 

If we’d been dealing with the IRS, they may have settled for nothing based on her income and assets, but she owed the New York Department of Revenue, which spreads the offer payment over five years, meaning they expected to get more than the IRS. So, we developed a strategy with those state-specific rules in mind. 

She was in a good position where family and friends were willing to help. They got together $100,000, and we convinced the state to accept it. She made the payment, and the DTF cleared the rest of the debt.

State tax debt is sometimes even harder to resolve than IRS tax debt, and that’s why you need a tax professional who will look at the case from every angle to find the best solution possible.

Get Help Applying for Settlements in These Situations

Everyone has a different situation. We’ve helped clients in these situations as well as countless others.

• High IRS tax debt balances with limited income and assets
• Self-employed taxpayers and business owners who can’t pay what they owe
• Individuals who aren’t sure about the options, even after looking at the IRS pre-qualifier
• People with previously rejected offers, needing help with appeals

The W Tax Group provides services nationwide, and we can also help you settle state tax debt, including applying for a Michigan offer in compromise.

Benefits of Working With a Pro, Why DIY Offers Fail

Unfortunately, it’s very common to receive rejections if you apply on your own, or to get approved for a settlement that’s higher than it should be. The most common reasons for IRS OIC denial include:

• Filing while ineligible
• Misvaluing your assets
• Not understanding the IRS’s allowable expenses
• Lapsing on the down payment or the periodic payments
• Not staying compliant during the IRS review

The reality is, OIC isn’t easy to obtain, but it is available when you can clearly show the IRS that you meet the requirements. Sometimes, that’s about the numbers, but often, it’s about the story and strategy behind the numbers. That’s why experience is critical.

How The W Tax Group Helps

Our offer-in-compromise attorneys provide comprehensive assistance, starting with an initial consultation. Here is what you can expect in our effort to get an OIC accepted:

• Case evaluation: We gather evidence to support your claims. We review all income, assets, equity, and expenses to create a highly accurate and well-supported offer.
• Accurate pre-qualification: You’re not wasting time guessing at your qualifications. Instead, our team will analyze any eligibility concerns to ensure you meet those requirements.
• Build the financial package: This includes Forms 656 and Form 433-A (OIC). This is one of the most important elements to get exactly right.
• Structure the offer amount: Our team will structure the offer amount based on what the IRS is likely to expect and what works for your financial situation.
• Negotiation: Once you authorize us to represent you, we handle all negotiations and IRS inquiries.
• Appeals: It’s possible that, even with what seems like a clear case, the IRS will deny your claim. In those situations, we handle the rejection appeal process for you.

The Tax Resolution Process at The W Tax Group

When you contact us, you can expect the following to happen:

• Full consultation: An open, protected, and private conversation.
• Authorization: Form 2848 authorizes our team to speak with the IRS on your behalf and obtain your transcripts.
• Financial review: We’ll review those transcripts and all data related to your IRS debt. We make sure it’s accurate and fully understood.
• Strategy selection: We will provide you with a clear understanding of your options. This isn’t about pushing one method but about offering you opportunities that help you reach your ultimate goal.
• Offer preparation and filing: We go to work for you to get an offer in compromise accepted or approach other strategies as necessary.
• IRS negotiation: Our experience and deep understanding of what the IRS expects and needs to agree to work in your favor.
• Resolution: We reach an agreement that fits your goals. We explain every detail to you.
• Staying compliant: Our team continues to support you through the monitoring period. This ensures you remain on track.

Possible Outcomes and Honest Alternatives

Realistically, an offer in compromise isn’t always accepted. But here are some potential outcomes:

• Your offer is accepted. You qualify, and you start meeting the expectations of that offer.
• Offer is rejected. We appeal the offer if we believe you still qualify and meet the IRS’s objectives.
• A better-fit alternative is considered. This may include a partial pay installment agreement or a move to currently not collectible status. OIC isn’t the only path for everyone, as you can see in the case study below.

You’re not alone in understanding and meeting the offer-in-compromise qualifications and requirements. Your offer in compromise lawyer is an advocate every step of the way.

Case Study – When an Offer Isn’t the Best Option

An offer in compromise must match the situation clearly, and if it’s not the best option for you, we’ll recommend something else. Here’s how that commitment to honesty, paired with expertise on IRS processes, helped some of our clients cut their debt almost in half: 

In this case, a couple who worked in a church wanted to pursue an offer in compromise. They’d heard about tax settlements, and they assumed that was the best option for their $30,000+ tax debt. Unfortunately, they had asset equity that disqualified them. 

When our attorney, Stephen Weisberg, recognized that an OIC wasn’t an option, he helped them understand other paths to relief. Ultimately, we secured a partial-pay installment agreement at $150 per month. 

At the end of the collection period, the remaining tax debt ($13,000) expired. The couple didn’t have to pay it. They were able to save their assets while also reducing their tax debt – it just took the right strategy.

The reality is, OIC works for some, but not everyone. Instead of chasing an OIC that’s going to be rejected, we create an honest qualification evaluation and then structure a solution that’s in your best interests.

The W Tax Group will always tell you openly and up front if you qualify for an OIC and if it is the debt solution for your specific goals.

Why Choose The W Tax Group

Applying for an OIC or exploring other tax relief programs can help avoid tax collection activities such as bank levies, wage garnishment, and federal tax liens from the IRS. 

Our attorney-led tax resolution team provides you with hands-on support. We offer nationwide IRS representation. Stephen A. Weisberg, our founder and lead tax attorney, is a licensed Michigan lawyer, supported by Lyle Warren, a tax attorney. 

Frequently Asked Questions (FAQs)

Here are commonly asked questions on OIC:

How much will the IRS settle for in an offer in compromise?

There’s no specific value or fixed percentage. It’s based on the RCP formula applicable to your situation. This can range from 1% to 50% or even more of what you owe.

How do I know if I qualify for an OIC?

We recommend a consultation with our IRS tax settlement attorney. However, you must demonstrate that your tax debt is more than you can realistically pay. An online pre-qualifier tool may offer surface-level information.

How long does an offer in compromise take?

Your OIC process can take six to 12 months from start to finish, though more complex matters can take up to 24 months.

What’s the difference between an OIC and a partial payment installment agreement?

An OIC is a permanent tax debt settlement for less than what you owe. It’s based on your income, expenses, and assets. A partial payment installment agreement is a payment plan where you pay what you can afford each month. This continues until the IRS collection window (10 years) expires.

Can I apply for an OIC myself, or do I need an attorney?

You can apply for an OIC yourself, but you risk high rejection rates. We strongly encourage a consultation and case evaluation with an attorney to minimize the risk of inaccurate rejections and unnecessarily high settlements.

Talk to The W Tax Group for Free

Get a confidential, no-obligation Free Tax Debt Analysis before you file an offer. Talk to The W Tax Group now to find out if you qualify for an offer in compromise. You don’t have to face the IRS alone. Call 877-500-4930 or reach us online now.