Will everyone qualify?

No. If the IRS can collect the full amount through a 10-year installment plan, an OIC is rejected. Most OIC clients have limited income and minimal equity.

Tax Help

Offer in Compromise

The IRS accepts about one in three OIC applications. Getting it right on the first try matters, rejected offers leave you worse off with the time that's passed.

Written by

Herman Viglione, EA

Updated April 22, 2026

30-day response window

IRS notices have short response windows. Call the office today if your deadline is close.

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Eligibility basics

You qualify if paying in full would create economic hardship, there's genuine doubt as to liability, or collection would be inequitable. The IRS calculates Reasonable Collection Potential (RCP) from your income, expenses, and asset equity. An offer must exceed RCP.

What it takes

Form 656, Form 433-A (OIC) or 433-B (OIC), $205 application fee, 20% down payment for lump-sum offers or first installment for periodic offers, and heavy documentation of income, expenses, and assets. We prepare and submit.

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Common questions

Will everyone qualify?: No. If the IRS can collect the full amount through a 10-year installment plan, an OIC is rejected. Most OIC clients have limited income and minimal equity.

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