.png)
We build strong, compliant Offer in Compromise submissions that meet every IRS requirement. We run the IRS numbers first and only file when the offer is realistic.
Last reviewed September 30, 2026 by Sabih Shafi, EA.
OFFER IN COMPROMISE
A Fresh Start With the IRS
Legally and Permanently
If you’re facing overwhelming tax debt and can’t see a way out, the IRS does offer a second chance — it’s called the Offer in Compromise (OIC). This powerful tax relief option allows qualifying taxpayers to settle their tax debt for less than the full amount owed. But here’s the catch: the IRS accepts only a small fraction of OIC applications each year. That’s where our expertise comes in.
What is an Offer in Compromise?
An Offer in Compromise is a written agreement in which the IRS accepts less than the full tax debt because it could not reasonably collect more. Eligibility is based on your income, expenses, assets and future earning ability, the “reasonable collection potential”. Most offers take 6 to 12 months, and collection is generally paused while the IRS reviews it.
It’s not a loophole — it’s a legal program designed for honest taxpayers who simply can’t afford their current tax debt but want to make things right.
Comprehensive Financial Review
We start by evaluating your entire financial situation — income, expenses, assets, liabilities, and future earning potential — to determine whether you qualify under the IRS’s “reasonable collection potential” test.
Expert Negotiation
We represent you directly before the IRS, communicating on your behalf, providing additional information if requested, and advocating for a realistic, fair settlement amount.
01
02
04
Strategic Preparation
If you qualify, our tax experts develop a strategic plan, preparing every required IRS form and documentation, including Form 656 and detailed financial statements that strengthen your case.
Finalization & Guidance
Once approved, we ensure all terms are met, and you’re guided toward long-term tax compliance — so you can confidently move forward, free from the stress of IRS debt
WHY CHOOSE
All State Tax Resolution
High Success Rate
Correct reporting and remittance to avoid escalating penalties.
IRS-Certified Experts
Our team includes enrolled agents and tax resolution professionals who understand IRS processes inside and out.
Honest Assessment
We don’t submit unrealistic offers — we only pursue OICs when there’s a legitimate chance of success.
Complete Confidentiality
Your financial data and case details are always handled with strict privacy and care.
Who Qualifies for an Offer in Compromise
You may be eligible if:
Paying the full debt would create significant financial hardship
You have limited income or assets
Your financial situation is unlikely to improve soon
There are doubtful liabilities or special circumstances affecting your case
You are a candidate when paying the full balance would leave you unable to meet basic living expenses, your assets are limited, and your income is unlikely to rise soon. We run the IRS calculation before filing; if the numbers do not work, we recommend an installment agreement or penalty abatement instead.
What You Gain
Peace of mind knowing you’re resolving your tax issues permanently
Protection from levies and garnishments while your offer is under review
Reduced tax debt — sometimes to just pennies on the dollar
A path to financial freedom and restored standing with the IRS
FAQs
Still Not Sure?
Here Some FAQs
Take the First Step Toward a Fresh Start
If your tax debt feels impossible to overcome, an Offer in Compromise could be the opportunity you’ve been waiting for.
Our experts at All State Tax Resolution are ready to help you navigate the process and build a compelling case that gives you the best chance at true financial freedom.
Call us today or schedule a free consultation — and let’s find out if you qualify for the IRS’s most powerful tax relief program.
