Settle Your Tax Debt for Less with an Offer in Compromise (OIC)

Did you know you may be able to settle your tax debt for just pennies on the dollar?

The IRS Offer in Compromise (OIC) program allows eligible taxpayers to resolve their tax debt for less than the full amount owed—often dramatically less. This powerful solution is available when a taxpayer is unable to pay in full or when the tax liability has been incorrectly assessed.

What Is an Offer in Compromise?

An OIC is a formal agreement between you and the IRS that settles your tax liabilities for less than the full balance. The IRS may accept an offer if:

“It is unlikely that the tax can be collected in full and the amount offered reasonably reflects the collection potential.”
— Internal Revenue Code section 7122

With a properly prepared offer, it’s possible to eliminate your tax debt completely, including penalties and interest, at a fraction of the original amount.

How Much Can You Settle For?

There is no fixed minimum the IRS will accept. Settlement amounts often range from 5% to 15% of the total tax debt—but success depends heavily on how the offer is prepared and presented.

The key is understanding what the IRS considers “reasonable collection potential” (RCP)—a calculation based on your income, expenses, equity in assets, and overall financial situation. We know how to structure your offer to reflect the lowest acceptable amount while maximizing your chances of approval.

Why Choose PSA CPA?

Preparing an Offer in Compromise is complex and highly technical. An incorrectly submitted offer can be rejected or result in a much higher payment than necessary. At PSA CPA, we specialize in OICs and know exactly what the IRS wants to see.

When you work with us, we will:

• Evaluate your eligibility and financial profile

• Calculate your minimum offer amount based on IRS guidelines

• Prepare a complete and compliant OIC package

• Communicate and negotiate directly with the IRS on your behalf

• Ensure all deadlines and documentation are handled correctly

Is an Offer in Compromise Right for You?

Not everyone qualifies for an OIC—but if you’re facing overwhelming tax debt, it’s worth exploring. Even if you’re not eligible, we can help you pursue other effective IRS resolution strategies, such as:

• Installment Agreements (Payment Plans)

• Currently Not Collectible status

• Penalty Abatement

• Bankruptcy consultation (if applicable)

Take the First Step Toward a Fresh Start

If you owe more than you can pay, don’t wait for the IRS to take action. A well-prepared Offer in Compromise could give you the clean slate you need.

📞 Contact PSA CPA today for a confidential consultation and find out if you qualify to settle your tax debt for less.