IRS Offer in Compromise Attorney |
Tax Debt Settlement Help
IRS Offer in Compromise Attorney
You may have heard that the IRS offers tax debt settlement options, which can sound very appealing when you’re dealing with back taxes. However, it’s not always as easy as some companies make it sound – that’s why the right legal help can be critical.
When your finances indicate that you can’t pay in full, the IRS may be willing to accept an offer in compromise to settle your taxes for less than owed, but the application process is lengthy, the laws are complex, and the requirements are nuanced. For best results, you need an experienced attorney.
Talk with Damiens Law when you’re curious about your tax resolution options. Our offer in compromise attorneys will review your case, determine if an OIC is the right option for you, and help you resolve your tax debt.
When should you consider an offer in compromise?
OICs aren’t for every taxpayer. If you can pay in installments, a payment plan may serve you better. These are the situations where an OIC makes sense.
Debt you can’t realistically repay
You owe more in tax debt than your finances can ever support in full.
Balance growing with penalties
Penalties and interest keep compounding and you can’t keep pace.
Facing liens, levies, or garnishment
The IRS is in active collection — seizing assets or garnishing wages.
Revenue officer assigned
An IRS revenue officer has been assigned to your case — escalation is real.
Not sure which option is right
Unsure if an OIC, installment agreement, or another path fits your situation.
If any of these describe your situation, reach out to Damiens Law to talk through your settlement options.
What Is an IRS Offer in Compromise?
An offer in compromise allows certain taxpayers to settle their debt for less than they currently owe. You send in your “offer” of what you can pay, provide your financial details, and wait to hear back from the IRS with an acceptance or rejection.
The IRS evaluates OICs based on reasonable collection potential. This refers to the agency’s ability to realistically collect what you owe in light of your financial situation. If the IRS believes that your offer is all it can reasonably accept to collect from you, it may accept your offer. When applying, you’ll need to share detailed information about your income, expenses, and assets.
Who Qualifies for an Offer in Compromise?
If you have limited income and low asset equity, you may have a good chance of getting approved. Another indicator is if you’re dealing with long-term financial hardship. The best way of determining if you might qualify is by talking with an attorney.
However, there are pre-qualification requirements as well – you must be in compliance with your tax filing requirements, estimated tax payments, and federal tax deposits, if you’re an employer.
When an Offer in Compromise Isn’t the Right Choice
Because the IRS rejects a lot of OIC applications, you want to be sure you have a good chance before you take the time to apply. These situations typically mean you should find another option:
- The CSED is approaching, meaning the IRS won’t be able to collect.
- Your income will improve because your hardship is temporary.
- You have significant asset value, such as a second home or investments.
- You can afford monthly payments under an installment agreement.
In these cases, consider another option. Ask a tax attorney at Damiens Law when you’re not sure. Be wary of companies that promise you can qualify for an offer before they know about your financial situation.
Alternatives to an Offer in Compromise
If an OIC isn’t the best fit for you, the IRS offers several other options to help you get out of debt and back in good standing. Consider these alternative solutions:
- Installment Agreement – Sometimes, you may just need to set up a payment plan to get your balance paid down.
- Partial Payment Installment Agreement (PPIA) – Designed for taxpayers who can’t afford the minimum payment on a traditional installment agreement, can lead to debt expiring at the end of the collection period.
- Currently Not Collectible (CNC) Status – CNC status is a temporary pause on your account. The IRS won’t try to collect when the status is in effect. You can qualify for CNC status if you can show that you’re experiencing temporary financial hardship.
- Penalty Abatement – If you have reasonable cause for your back taxes, such as an illness or death, or you haven’t had the same type of penalty in the previous three tax years, the IRS may waive or reduce your penalties.
Offer in Compromise Requests for Businesses
We help individuals and businesses pursue offers in compromise. When you need help for your business, we assist with applying for settlements on payroll taxes, corporate income taxes, or other business tax.
We also help businesses with trust fund penalty exposure, resolving tax debt when closing a business, and other concerns.
Business and payroll cases bring a new level of complexity to offer in compromise cases, so be sure to reach out to us for assistance. It’s crucial to protect your personal assets no matter what’s going on with the business.
What If My Offer Is Accepted?
Requesting an OIC is only the first step in getting your tax debt resolved. What happens if the IRS accepts your offer?
First, the offer you sent in with your request will need to be paid. This is the settlement amount you’re agreeing on with the IRS. It reflects the amount you can reasonably pay with your financial situation.
As part of the OIC agreement, you also agree to file all your required tax returns on time and pay what you owe by the deadline for the next five years. Otherwise, the IRS can void the agreement, and you may have to pay the original debt.
When you work with Damiens Law, we make sure you understand all of these requirements and are set up for a successful, compliant future with your tax obligations.
Helping Taxpayers in Mississippi, Tennessee, and Nationwide
Our focus is on taxpayers in Mississippi and Tennessee for state tax issues, but we serve clients across the country. Even if you’re in a different state, we offer remote case handling services and negotiate with the IRS directly on your behalf.
If you also have state tax issues, we can coordinate those steps as well. Talk to us about your tax needs in Mississippi, Tennessee, and beyond when you’re looking for offer in compromise services.
Our Legal Strategy for Offer in Compromise Cases
You need a unique approach when dealing with an offer in compromise request. Our team uses a strategy that ensures this option is right for you.
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Obtain and analyze IRS account transcripts Full picture of all years assessed, balances, and collection status. |
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Confirm balances and collection status Verify what the IRS says you owe and where enforcement stands. |
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Review CSED timelines Assess the collection statute expiration date to inform strategy. |
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Detailed financial analysis Income, expenses, and assets evaluated under IRS allowable expense standards. |
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Evaluate asset equity exposure Determine how property and assets affect your reasonable collection potential. |
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Compare OIC against alternatives Weigh OIC against installment agreements, CNC status, and other options. |
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Prepare a defensible OIC submission A complete, well-documented package built to withstand IRS scrutiny. |
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Direct IRS communication We communicate directly with IRS examiners and appeals officers on your behalf. |
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Respond and negotiate terms We handle every IRS documentation request and negotiate through to resolution. |
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Our firm does much more than simply submit forms. We act as your legal advocate — negotiating with the IRS on your behalf and walking you through every step of the process.
Case result
IRS offer in compromise accepted
Multi-year federal tax liability settled for a fraction of the full balance owed. Here is how the representation unfolded — from first contact through final IRS acceptance.
Client type
Individual
W-2 & self-employment
Tax agency
IRS — Federal
IRC §7122
Time to resolve
~2 yrs
Submission to acceptance
Debt settled
Fraction of balance
Multi-year liability resolved
How the case was resolved
Power of attorney filed — IRS transcripts obtained
Full account transcripts pulled for all relevant tax years. Filing compliance confirmed — a mandatory prerequisite before any OIC submission.
Comprehensive Form 433-A financial package prepared
Income, allowable expenses, and asset valuations documented under IRS Collection Financial Standards. Offer submitted under IRC §7122 — doubt as to collectibility.
IRS challenged asset disclosures — multiple documentation rounds
The IRS disputed the initial offer amount and requested additional financial documentation on several occasions. Each challenge was answered with updated records and supporting evidence.
IRS accepted the offer — liability resolved
After sustained negotiation across approximately two years, the IRS moved from challenge to acceptance. Multi-year federal tax liability settled for a fraction of the full balance owed.
“I didn’t think there was any way out of this. The number was too big. I was just waiting for the worst to happen. When they told me the IRS accepted the offer, I couldn’t believe it — that debt had been hanging over my head for years.”
— Mid-South taxpayer, OIC client (name withheld for confidentiality)
Direct IRS negotiation by a licensed tax attorney
LL.M. in Taxation — advanced federal tax law credential
Attorney-client privilege on every communication
Persistent representation through multi-year IRS challenges
When to Hire an Offer in Compromise Attorney
OICs can be complicated in general, so working with an attorney is usually a wise choice. Some small, manageable balances may not require formal representation, but pursue legal help if you have:
- A large tax balance
- Involvement from a Revenue Officer
- A complex business ownership structure
- Tax debt from a few years ago
- Payroll tax exposure
We’re here to help you navigate these complex issues. An attorney helps more than a settlement company because they can provide direct legal representation, attorney-client privilege benefits, and years of experience handling IRS enforcement cases.
Choosing Damiens Law for Offer in Compromise Representation
Damiens Law provides OIC expertise and representation to taxpayers in Mississippi, Tennessee, and across the country. We help with even the most complex cases, ensuring an OIC is right for your situation and, if not, helping you find other solutions.
Our attorney offers direct negotiation with the IRS so you don’t have to deal with the agency on your own. We provide a clear strategy that we personalize to your situation.
Set up a consultation with our attorney to discuss your OIC options.
FAQs About Offers in Compromise
What are the chances my OIC will be approved?
The IRS only accepts settlement offers that represent what the agency can reasonably expect to collect based on the taxpayer’s financial situation. Many offers are rejected. Work with us to get expert guidance on when to apply and when to pursue another resolution option.
Can businesses apply for an offer in compromise?
Yes, businesses can apply for an OIC. These cases can be more complicated, so be sure to talk to an attorney.
What happens if my offer is rejected?
We will work tirelessly to negotiate with the IRS on your behalf. However, if the offer isn’t accepted, we will help you pursue other resolution options, like payment plans or currently not collectible (CNC) status.
Can you represent me if I live outside of Mississippi or Tennessee?
Yes, we work with taxpayers across the United States on federal IRS cases. Talk to us about whether you should apply for an OIC and how to increase your chances of getting approval. We also help taxpayers with state tax issues in Mississippi and Tennessee.
