Offer in Compromise
An offer in compromise lets qualifying taxpayers settle their tax debt for less than they owe. It is not a fit for everyone, so we start with an honest analysis of whether you qualify, and if you do, we build the strongest possible offer.
How Nelson & Associates handles Offer in Compromise
The IRS accepts an offer when the amount offered represents the most it can reasonably expect to collect within the collection period. That figure, called your reasonable collection potential, is based on the equity in your assets plus your future disposable income. If your offer is equal to or greater than that figure, and you meet the other requirements, the offer has a realistic chance.
Offers can also be based on doubt as to liability or on effective tax administration when collection would cause economic hardship. Because many promoters oversell offers, we always calculate your numbers first and tell you plainly whether a payment plan or other option would serve you better.
Who this is for
- Taxpayers with limited income and assets relative to their debt
- Retirees on fixed income with old tax balances
- Business owners whose business has closed
- People whose debt arose from circumstances outside their control
- Taxpayers who dispute that they owe the tax
- Anyone told they qualify for pennies on the dollar who wants a straight answer
Everything covered in our Offer in Compromise service
- Reasonable collection potential calculation
- Eligibility review, including filing and estimated payment compliance
- Form 656 and Form 433-A (OIC) preparation
- Supporting documentation and asset valuations
- Negotiation with the IRS offer examiner
- Appeals if the offer is rejected
- Low-income application fee waiver where eligible
- Compliance monitoring for five years after acceptance
The paperwork behind Offer in Compromise
| Form 656 | Offer in Compromise |
|---|---|
| Form 433-A (OIC) | Collection information statement for individuals |
| Form 433-B (OIC) | Collection information statement for businesses |
| Form 656-L | Offer based on doubt as to liability |
| Form 13711 | Request for appeal of an offer rejection |
What we’ll need from you
Have these ready and your first meeting goes faster. Missing something? We’ll help you find it.
- All IRS balance notices
- Six months of bank statements
- Pay stubs or business profit and loss
- Mortgage, vehicle loan and retirement statements
- Proof of monthly living expenses
- Recent returns and proof of current estimated payments
How it works, step by step
Free confidential consultation
Tell us what the IRS sent and what has happened so far.
Get your IRS file
We pull your transcripts to see exactly what the IRS sees.
Build the solution
We file what's missing and choose the best resolution option.
Resolve and stay compliant
We negotiate, confirm the outcome and keep you on track.
Why clients choose us for Offer in Compromise
CPA representation
With your signed Form 2848 we deal with the IRS directly, so you don't have to.
Efficient and affordable
We work toward the fastest resolution that fits your finances.
Extremely discreet
Your situation stays private, handled only by authorized staff.
Fraud and forensic background
Our founder has served as an expert witness in federal tax cases.
Offer in Compromise across the United States
From our Doral office we provide Offer in Compromise to clients in all 50 states and Washington, D.C. Hover over a state to see its tax profile and the cities we serve; tap it to open the state page.
Services clients often pair with this
Back Taxes Owed
Practical solutions for unpaid federal tax balances, from penalty relief to payment plans and settlements.
Learn more IRS Tax Problems & ResolutionIRS Payment Plans
Installment agreements, short-term extensions and currently-not-collectible status matched to what you can afford.
Learn more IRS Tax Problems & ResolutionUnfiled Tax Returns
Catch up on years of missing federal returns, limit penalties and get back into good standing with the IRS.
Learn more IRS Tax Problems & ResolutionInnocent Spouse Relief
Relief from tax, interest and penalties on a joint return when your spouse or former spouse was responsible.
Learn moreMore in IRS Tax Problems & Resolution
Offer in Compromise FAQs
6 answers to the questions clients ask most. Don’t see yours? Ask us directly.
Will the IRS really settle for pennies on the dollar?
Only when the numbers support it. Acceptance depends on your income, expenses and asset equity, not on how much you owe. We tell you honestly whether you qualify.
How long does an offer take?
Many offers take six months or longer. Collection is generally suspended while an offer is under consideration.
What do I pay when I submit an offer?
There is an application fee plus an initial payment, either 20% of the offer for a lump-sum offer or the first proposed installment for a periodic payment offer. Low-income taxpayers may qualify for a waiver.
What happens to my refunds?
The IRS keeps any refunds for the year the offer is accepted and earlier years. After acceptance, you must file and pay on time for five years.
What if my offer is rejected?
You can appeal within 30 days, or we can pursue a different resolution such as an installment agreement.
Do you offer Offer in Compromise outside Florida?
Yes. Our office is in Doral, Florida, and we work with clients across the United States and abroad through secure uploads, phone and video meetings and e-signatures. South Florida clients are welcome to meet with us in person.
Talk to a CPA about Offer in Compromise.
Your initial consultation is free. Call us, email us or visit our Doral office, and we’ll tell you exactly what you need and what it will cost.