An Offer in Compromise (OIC) lets you settle IRS or California tax debt for a fraction of the full amount — based on your real ability to pay, income, expenses, and asset equity. Most OICs fail because they were structured wrong. We structure ours to be accepted.
You've seen the radio ads: "We settled $50,000 in tax debt for $500!" Some of those are real cases. Many are not. The IRS rejects roughly two-thirds of all OIC applications, often because the offer was structured by a salesperson, not a tax professional.
Our free consultation includes an honest assessment of your OIC eligibility using the IRS's actual Reasonable Collection Potential (RCP) formula. If an OIC isn't right for you, we'll tell you that — and recommend a better path (installment agreement, currently-not-collectible status, penalty abatement).
Your monthly income minus allowed living expenses. Lower disposable income = stronger OIC.
Equity in real estate, vehicles, retirement, and business. Quick-sale value, not market value.
Realistic forward-looking earnings. Used to multiply your monthly disposable income.
Your OIC offer must equal your Reasonable Collection Potential — calculated using the IRS's own formulas. We do this calculation before filing so we know what number the IRS will accept.
Free consultation. We calculate your RCP and tell you if an OIC is realistic.
Forms 433-A (OIC) and 433-B (OIC) prepared meticulously — errors here kill offers.
Form 656 with supporting documentation, payment of application fee and initial offer.
Respond to OIC examiner requests, negotiate adjustments, secure acceptance.
It depends entirely on your Reasonable Collection Potential. We've seen accepted offers of pennies on the dollar — and we've seen the IRS refuse to settle for less than the full liability. The number is driven by your finances, not by negotiation alone.
Typically 6-12 months from submission to acceptance. During that time, IRS collection activity is generally paused.
You can appeal to IRS Appeals within 30 days. We handle that appeal as part of our engagement. If the appeal fails, we pivot to installment agreement, partial pay agreement, or currently-not-collectible status.
Yes. California Franchise Tax Board has its own OIC program with similar mechanics. We handle FTB OICs in parallel with IRS OICs when both authorities have claims.
CDTFA has its own Settlement Program, which functions differently from an OIC but produces similar reductions for qualifying cases. See our CDTFA defense page for details.
30-minute consultation. We run the numbers, give you an honest answer, and only recommend an OIC if it's the right tool for your situation.
(408) 287-1888
We respond within 1 business day.