Offer in Compromise Help to Settle IRS Debt
We help qualified taxpayers negotiate legitimate IRS settlements.
An Offer in Compromise (OIC) allows qualifying taxpayers to resolve IRS tax debt for less than the full amount owed — legally and permanently.
It is one of the most powerful IRS tax relief tools under the IRS Fresh Start framework, but it only works when the case is structured correctly.
At Newline Tax Group, we help determine whether an OIC is realistic, calculate what the IRS will accept, and manage the process from start to finish.
Who an Offer in Compromise Is — and Is Not — For
- For taxpayers who truly can’t pay the full balance
- Based on income, assets, and IRS formulas
- Not everyone qualifies — and that matters
The IRS does not negotiate based on hardship alone.
They calculate something called Reasonable Collection Potential (RCP) — the amount they believe they can collect from you over time
That calculation is based on:
• income
• allowable living expenses
• equity in assets
• compliance history
If the IRS determines full collection is unlikely through a monthly payment plan, they may accept a reduced settlement.
Example (illustrative only)
Owe $50,000
IRS determines limited ability to pay
Settlement accepted for a lower amount
This is not automatic — it’s the result of proper financial analysis and documentation.
👉 Learn How Tax Resolution Works
Who May Qualify for an Offer in Compromise
An OIC may be an option if you:
• owe $10,000 or more in IRS back taxes
• have filed all required tax returns
• are not in active bankruptcy
• have limited ability to pay the full balance
• can document income, expenses, and assets accurately
The IRS also reviews equity in assets such as homes, vehicles, and savings.
Many taxpayers still qualify for IRS Fresh Start Programs when cases are structured correctly.
Qualification is based on facts — not desire.
Types of Offers in Compromise
Lump-Sum Offer
A reduced settlement paid in one or a few payments.
Periodic Payment Offer
A settlement paid over time through structured installments.
Choosing the right option affects approval odds and cash flow.
We help determine which approach fits your situation.
Why Professional Representation Matters
Most self-filed Offers in Compromise are rejected.
Not because relief isn’t available — but because submissions fail to meet IRS standards.
Here’s how we help:
• calculate RCP using official IRS guidelines
• prepare a complete, accurate OIC package
• submit required documentation correctly
• communicate directly with the IRS
• maintain compliance so the agreement isn’t revoked
This process is technical. Precision matters.
Why File With Newline Tax Group
Submitting an Offer in Compromise incorrectly can:
• waste filing fees
• delay relief
• restart collection activity
Our licensed IRS Enrolled Agents manage the process to protect income, reduce exposure, and improve approval odds.
This isn’t about shortcuts.
It’s about doing it right the first time.
FAQs: Offer in Compromise
Does everyone qualify for an OIC?
- No. The IRS rejects many offers. Eligibility depends on financial documentation and realistic settlement calculations.
How much can I save?
- Results vary. Some taxpayers reduce balances significantly, while others are better served by alternative Fresh Start options.
How long does the process take?
- Most OIC cases take 6–12 months, depending on IRS workload and case complexity.
Once accepted, the tax debt is considered resolved.
