Tax Debt Stress? Here’s How an Offer in Compromise Can Set You Free

Tax debt can feel like a weight you’re carrying around 24/7. If you're in over your head, an Offer in Compromise (OIC) might be the lifeline you’ve been looking for. It's a program that allows you to settle your debt with the IRS for far less than you owe.

Here’s everything you need to know about how this program works, and why it could be your best option for a fresh start.

What Exactly is an Offer in Compromise (OIC)?

An OIC is exactly what it sounds like — an agreement between you and the IRS where you pay less than the total amount you owe to settle your tax debt. But this isn’t a "get out of jail free" card. It’s a legal process, and the IRS doesn’t make it easy.

The key here is demonstrating that paying your full debt would cause you financial hardship — and that they’re better off taking a smaller amount than waiting for you to pay in full, which may never happen.

Who Qualifies for an OIC?

Qualifying for an OIC depends on a few critical factors, including:

• Your income and assets

• Your monthly living expenses

• The amount you owe to the IRS

The IRS won’t approve your offer unless they believe it’s a reasonable settlement based on your financial situation. That’s where we come in — we know how to structure an offer that gives you the best chance of success.

Real Life Example: How We Helped a Client Settle $35,000 for Just $5,000

One of our clients, a small business owner, was facing $35,000 in back taxes. After reviewing their financials, we submitted an OIC — and the IRS accepted their offer of just $5,000.

It was a huge win, and it didn’t just save them money — it gave them peace of mind and a chance to rebuild.

Let Us Help You Through the OIC Process

An OIC can save you thousands, but it’s not a one-size-fits-all solution. The process is complex, and the IRS is tough to negotiate with. But All State Tax Resolution exactly knows how to make your case stand out.