Oferta de compromiso

IRS Offer in Compromise Help | Settle Your Tax Debt for Less

If your business or personal tax debt has grown beyond what you can realistically repay, an Offer in Compromise (OIC) may let you settle that debt for less than the total balance. Successfully navigating this IRS program requires strategy, which is why 20/20 Tax Resolution pairs you with a licensed tax professional who handles every step of your case.

We’re a Colorado-based national firm serving business and individual clients nationwide, but we don’t operate like a high-volume call center or hand off cases to assistants. We only file offers that have the highest chances of success.

We’ll tell you honestly whether this program is your best option, and if not, we’ll recommend another solution. To get help now, contact us for a consultation.

What Happens with Unresolved Tax Debt?

If you’re late on filing your taxes or you’ve fallen behind on payments, you’re not alone. However, ignoring the situation can lead to a much higher debt than you started with. Over time, penalties and interest will make the balance grow substantially.

Kicking the proverbial can down the road doesn’t only result in a fast-growing balance, either. The IRS can shift from sending automated notices to more aggressive, direct collection actions.

• Federal tax liens: The IRS secures a legal claim against your personal and business property, including your home, vehicles, and future assets.

• Bank and asset levies: If you ignore notices, the IRS can clean out your bank accounts, seize physical property, or take business equipment to satisfy your debt.
• Wage garnishments: The federal government can legally require your employer or business clients to send a substantial portion of your earnings to the IRS until your debt is satisfied.
• Fewer resolution options: Waiting until the IRS issues levies reduces your leverage. Proactively tackling the problem gives you time to find the best strategy; waiting for collections forces you into damage control.

If IRS Debt Is Keeping You Up at Night, You’re Not Out of Options

What started as a manageable problem becomes a lien on business assets and property, a levy on accounts, or a garnishment that disrupts operations and your income. The longer it goes unaddressed, the fewer options remain and the harder each one becomes to execute.

If you can’t afford to pay your tax debt, you’re in the right place. We work with businesses and individuals carrying balances they have no realistic path to repaying in full, including:

• Businesses navigating cash flow problems and carrying large tax burdens.
• Self-employed individuals with unpaid taxes from previous years.
• Taxpayers facing genuine financial hardship.

We also work with individuals and businesses that have considered payment plans and found they can’t meet the monthly obligation given their current income or revenue.

If any of these scenarios describes your situation, an OIC is worth considering.

What is an Offer in Compromise?

An Oferta de compromiso allows qualifying taxpayers to settle their IRS debt for less than the full amount owed. It’s a legitimate option when full payment isn’t realistic, given your income, expenses, and assets — or when paying in full would create genuine financial hardship.

While it’s possible to request an OIC yourself, it’s not an easy process because the IRS requires a lot of documentation. The agency evaluates your entire financial life, including current income, worth noting? living expenses, and total asset equity, to calculate your maximum collectibility.

You must meet strict financial thresholds and provide extensive, detailed documentation to prove your inability to pay your full tax debt before the legal collection period expires.

The good news? Businesses and individuals with limited disposable income and minimal asset equity are often strong candidates for this program.

How 20/20 Tax Resolution Handles the Process

Less reputable tax relief firms will take your case regardless of whether it’s winnable. We won’t. We only recommend requesting a settlement when it’s a viable solution for your situation.

Every taxpayer has the right to request an OIC, but not every request succeeds. The IRS denies many offers because the business or individual:

• Didn’t qualify to begin with – for example, they have unfiled returns or a recent offer in compromise.

• Has too much income or equity in their assets to qualify.
• Made an offer that was less than their reasonable collection potential (RCP), with no explanations to build their case.
• Failed to submit a compelling argument about why the IRS should consider exceptions to its usual financial standards.
• Submitted insufficient, wrong, or inaccurate documentation.

Poor preparation leads to immediate denial, and the IRS will keep your non-refundable application fee. If you’re a viable candidate, we’ll work with you to build your case by:

• Collecting and organizing all required financial documentation.
• Calculating your RCP using IRS local and national expense standards.
• Developing a strategic settlement offer amount that matches the math.
• Preparing the application, including Form 433-A (OIC) for individuals or Form 433-B (OIC) for businesses.

Once we submit the form, we handle all IRS communication, respond to requests for additional information, and track the case through to a final decision. If the IRS approves the OIC, we will ensure you understand your compliance obligations.

Who an OIC works best for

The IRS offers an OIC to businesses and individuals with significant tax debt. It’s the right fit if your monthly income just covers your living expenses, you have limited equity in assets, and a regular IRS repayment plan would create more financial hardship.

Timing also plays a role. By law, the IRS has a 10-year statute of limitations to collect back taxes. If your income is so low that you can’t possibly pay the full balance before time runs out, the IRS would often rather accept a smaller settlement now than spend time attempting to collect a debt that is about to expire.

When an OIC isn’t a good fit

The IRS turns down more settlement offers than it accepts, mostly because applicants don’t fit the program’s strict requirements. You likely won’t qualify for an OIC if your business has significant assets or you own valuable personal assets (e.g., home equity, investments, commercial property) that could clear the debt.

If this describes your situation, don’t panic. There are other options, and we’ll work to find the right one for you.

When an OIC isn’t the answer

Not every tax debt situation calls for an OIC, and requesting one when you don’t qualify wastes time and delays resolution. Depending on your circumstances, one of these options might work better:

• Installment agreements: Structured monthly payments based on what you or your business can reasonably afford.
• Currently Not Collectible status: A formal IRS designation that pauses collection activity when paying would create genuine financial hardship.
• Penalty abatement: Reduction or removal of penalties when you have reasonable cause or qualify for first-time abatement.

Why Choose 20/20 Tax Resolution

The sole focus of our national practice is tax resolution — not tax prep or anything else. Our tax professionals work on your case directly. We serve businesses and individuals throughout the U.S. and have significant experience working with companies and self-employed taxpayers whose tax situations tend to be more complex.

We charge less than most national competitors, and we don’t recommend services our clients don’t need. If you worked with a firm and your case went nowhere, we can review what happened and give you an honest assessment of whether resubmission makes sense.

Who might not need full representation?

In the spirit of transparency, you should know that not everyone who contacts us actually needs to hire a full-service tax resolution firm. If you owe a relatively small balance, have a clear ability to pay it off, and aren’t facing active enforcement actions (bank levy or wage garnishment), you can likely set up a standard repayment plan through the IRS website on your own.

Our goal is to build long-term trust, not to sell you an expensive service that doesn’t fit your situation. But tax compliance can get complicated quickly, and making a mistake on your forms can accidentally reset your status or cost you more in the long run.

Even if you plan to handle the paperwork yourself, we still suggest scheduling a quick evaluation with our team. We’ll review the details, confirm that you’re on the right track, and make sure you’re not missing a simpler alternative before you make any final decisions.

Preguntas frecuentes

What is an Offer in Compromise?

An OIC is an IRS program that lets qualifying taxpayers, including businesses, settle their debt for less than the full amount owed.

How do I know if I qualify for an OIC?

Qualification depends on your income or business revenue, expenses, assets, and compliance with filing requirements. Our licensed tax professionals can walk through your situation in detail during your initial consultation. The IRS pre-qualifier tool can be a good place to start your research, but for customized guidance, you should reach out to a professional.

How much might my debt be reduced?

There’s no standard answer – tax forgiveness, through an OIC, depends entirely on your financial picture. Some clients settle for a fraction of what they owe. Others don’t qualify for an OIC at all. To answer this question, call us to schedule a consultation to review your case.

How long does the OIC process take?

IRS review typically takes six months to a year, and sometimes longer for complicated business cases. We manage the process and communicate with the IRS throughout.

What happens if the IRS rejects my offer?

You have the right to appeal within 30 days of rejection. We review the IRS’s reasoning, assess whether an appeal has merit, and determine whether resubmitting or choosing an alternative resolution strategy makes more sense.

Do I need to file all returns first?

Yes. The IRS won’t consider an OIC if you have unfiled returns. Getting into compliance is a prerequisite, and we can help address this, too.

Can businesses qualify for an OIC?

Yes. Businesses with outstanding payroll tax liabilities or income tax debt can request an OIC.

Will IRS collections stop while my offer is under review?

Generally, yes. The IRS typically suspends collection activity while OIC is pending and during the appeal period (another good reason not to procrastinate starting this process).

Can I request an OIC on my own?

Technically, yes. But for businesses, complex cases, or situations involving active collections, the preparation and presentation requirements justify working with a professional like 20/20 Tax Resolution.

What happens after the IRS accepts an OIC?

Acceptance comes with conditions. You must remain compliant with all filing and payment requirements for five years. Any lapse can void the agreement and reinstate the original balance.

Talk to Someone Who Will Tell You the Truth About Your Options

Our licensed tax professionals evaluate your situation before recommending a path, and we don’t move forward until we believe the case is worth making. We’ll help you secure the lowest settlement possible for your situation.

Contact us to schedule a consultation. No pressure, no promises we can’t keep — just an honest assessment of where your business or individual taxes stand.