The Situation
This client came to Republic Tax Relief carrying a federal tax debt of $46,192. Like many taxpayers in this position, the balance had grown past what they believed they could ever pay back in full.
They wanted a real resolution, not just more time to make the problem worse. An Offer in Compromise looked like the only realistic path forward.
The Challenge
Every Offer in Compromise case comes down to one question: can the IRS prove it could collect more by forcing payment than by accepting a lower amount? Building that case takes accurate numbers, complete paperwork, and a filing that holds up to IRS review.
A single mistake in the financial statement, a missing return, or an unsupported expense can get an offer rejected before it’s ever truly considered.
What We Did
- Reviewed the client’s full financial picture, including income, expenses, and asset equity, to confirm they were a strong candidate for an Offer in Compromise
- Confirmed tax filing and payment compliance, a requirement the IRS checks before it will even review an offer
- Prepared and submitted Form 656 along with the required financial statement, calculating an offer amount based on the client’s reasonable collection potential
- Tracked the offer through the IRS Centralized OIC unit’s review process and responded to any requests for additional information
- Communicated directly with the IRS on the client’s behalf throughout the review
The Result
The IRS accepted the offer on doubt as to collectibility grounds. The client settled their full $46,192 federal tax debt for $2,620, a reduction of about 94 percent.
The acceptance letter came from the IRS Centralized OIC unit, and the client now has five years of required on-time filing and payment ahead of them to keep the settlement in place.
Results like this are not typical for every case. An Offer in Compromise depends on your specific income, expenses, assets, and tax history, and the IRS reviews every case on its own facts. Past results do not guarantee a future outcome.
Could an Offer in Compromise Work for You?
If you’re carrying a tax debt that feels impossible to pay back, you may have more options than you think. Our team can walk through your numbers and tell you honestly whether an Offer in Compromise fits your situation.
Call 800-676-6014 to talk it through.
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