Michael L. Davis
Enrolled Agent, OIC Specialist

Offer in Compromise (OIC) and IRS Straight Talk

 

Get straight talk and competent advice from a retired IRS OIC Specialist.

Caution! Do not be misled: Many people do not qualify. The Offer in Compromise (OIC) process is long and difficult, and the Internal Revenue Service rejects the great majority of the offers it receives.
 

Annually, the IRS accepts approximately 14% of the Offers in Compromise it receives.  That's down from over 17% in 1997 through 2001.  Why?  Former IRS Commissioner Mark Everson, who served from 2002 through 2007, disliked OIC acceptances and did much to discourage them.  By doing so, he also discouraged OIC submissions by ethical tax professionals, who choose not to accept a fee for submitting an OIC which the IRS very probably will reject.  As a result, there has been a big drop in the number of OICs received annually by the IRS. 

 
Based on my 30-year career with the IRS and my 11 years of experience as an IRS OIC Specialist/Examiner, my OIC expertise is second to none. I am highly qualified to determine who is and is not a candidate for an offer-in-compromise. If you are a candidate for an OIC, I can calculate the amount of a potentially acceptable offer, using the IRS's OIC guidelines.   Of equal importance is the following:  If you are not a candidate for an OIC acceptance, I will tell you so, and in most cases I can recommend your best potential alternative for a resolution with the IRS.  Most of the alternatives are identified on the MY SERVICES page of this website.  This is in stark contrast to many of my competitors, who must charge high fees to cover their overhead and advertising costs, and, to get you to pay those fees, they promise unrealistic results.

 

I operate a one man IRS tax liability resolution practice.  For that reason, I must be selective in accepting new clients, and I, personally, provide all services to my clients.

Read about how my experience and my services are superior to that of most of my competitors and then contact me for a free initial consultation.

What is an OIC?
An Offer in Compromise (OIC) is a process through which a federal tax liability can be settled for a payment of less than the full amount that's owed to the IRS.

An OIC can be submitted to contest the amount of a tax liability, but most are based on inability to pay the full amount or financial hardship.

Caution:
Do Not Be Misled
In many websites of firms advertising OIC assistance, it is implied, if not falsely promised, that just about anyone who owes Federal taxes can settle his or her tax liability through an Offer in Compromise. They imply, "Just pay our fee, and we will make it happen." Don't believe it!
OIC Facts
Annually less than 1% of all delinquent federal tax accounts were resolved through the IRS's acceptance of an Offer in Compromise.
IRS Executive Cheryl Sherwood in a speech to tax professionals at the IRS Nationwide Tax Forum, Atlanta, Georgia.