Settle Your IRS Tax Debt for Less An Offer in Compromise (OIC) allows you to resolve your entire tax debt with the IRS for less than the full amount owed — sometimes significantly less. While the IRS accepts only a fraction of OIC applications each year, our team has extensive experience preparing successful offers that meet the IRS's strict evaluation criteria and withstand scrutiny from Offer Examiners. At Neil Jesani Tax Resolution, we conduct a thorough financial analysis before recommending an OIC, ensuring it's genuinely the right strategy for your situation. We prepare comprehensive applications that accurately present your financial position and maximize your chances of acceptance while keeping your offer amount as low as legitimately possible. How the OIC Process Works The IRS evaluates Offers in Compromise based on your Reasonable Collection Potential (RCP) — a formula that considers your monthly income, allowable living expenses, asset equity, and future earning capacity over the remaining collection statute. Our team understands exactly how the IRS calculates this figure and works to present your financial situation in the most favorable light within legal and ethical boundaries. The process involves preparing detailed financial disclosures on IRS Forms 433-A (OIC) or 433-B (OIC), gathering extensive supporting documentation, and submitting a formal offer with the required application fee and initial payment. We handle all negotiations with the IRS Offer Examiner, respond promptly to information requests, and advocate for your position throughout the evaluation period, which typically takes 6-12 months to complete. During the evaluation period, the IRS generally suspends collection activity on the tax years included in the offer, providing welcome relief from levies, garnishments, and other enforcement actions. Is an OIC Right for You? An Offer in Compromise is most effective when your total tax debt significantly exceeds what the IRS could realistically collect...