An Offer in Compromise (OIC) is a tax relief option offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. It’s designed for individuals who are unable to pay their tax liability in full due to financial hardship. Essentially, this program provides an opportunity for a fresh start by negotiating a reduced amount, but it’s important to understand that not everyone qualifies.
At CuraDebt, we can help determine if you qualify for an OIC and assist you through the application process to maximize your chances of success.
To qualify for an Offer in Compromise, the IRS considers several factors, including:
Additionally, the IRS uses a formula called Reasonable Collection Potential (RCP) to determine if the offer amount is realistic based on what they believe they can collect from you. Typically, the IRS accepts about 30-40% of OIC applications.
When applying for an OIC, there are two main payment options:
Many taxpayers have shared their personal experiences applying for an OIC on platforms like Reddit, Quora, and X. Here are a few real examples that highlight the challenges and benefits of resolving tax debt with the IRS:
1. Reddit User:
One Reddit user shared, “I tried to settle my debt myself, but the process was overwhelming. Eventually, I hired a tax company, and they helped me negotiate an OIC. It took months, but I ended up paying significantly less than I owed. Definitely worth it!”
Quora Feedback:
A user on Quora stated, “I was in a tough spot with over $40,000 in back taxes. After applying for an OIC, the IRS rejected my first application. I appealed and worked with a tax professional to revise it. Eventually, the offer was accepted, and I paid around $10,000.“
X User:
One user on X tweeted, “The IRS garnished my wages until I applied for an Offer in Compromise. It took almost a year, but I finally settled for less. Just make sure to stay compliant with taxes after, or they can revoke the deal.”
Applying for an Offer in Compromise can be daunting, especially when trying to navigate the IRS’s strict criteria. CuraDebt offers personalized guidance, helping you:
Get a free consultation today to explore your options for tax debt relief.
If your OIC is rejected, the IRS allows you to appeal within 30 days. It’s essential to submit any missing documentation or clarify your financial situation. Working with a professional can improve your chances of success during the appeal process.
An Offer in Compromise can provide significant tax relief, but it’s crucial to meet the eligibility requirements. By working with a trusted tax professional like CuraDebt, you can navigate the process more effectively and potentially reduce your tax burden. Contact us today for a free consultation and take the first step toward resolving your tax debt.