Is an Offer in Compromise the Right Tax Solution for You in 2025?
Owing the IRS a significant amount of money can feel overwhelming, but you may have an opportunity to settle for less than the full amount through an Offer in Compromise (OIC). This IRS program is designed for taxpayers who are struggling financially and cannot reasonably pay their full tax debt.
What is an Offer in Compromise?
An OIC allows eligible taxpayers to negotiate a reduced settlement with the IRS based on their financial situation. The IRS considers:
- Your income and expenses – Can you afford to pay in full?
- Your assets – Do you have property or savings that could be used to pay the debt?
- Your financial hardship – Would paying the full amount create a significant burden?
The Offer in Compromise Process
- Determine Eligibility – The IRS will only accept an OIC if they believe they may not be able to collect the full debt.
- Prepare Documentation – Submitting an OIC requires detailed financial records and proof of hardship.
- Submit Your Offer – You’ll need to propose an amount you can afford to pay.
- Wait for IRS Review – The IRS will analyze your offer and either accept, reject, or counter it.
Why Work with a Tax Professional?
While an OIC is a powerful tool, the IRS rejects most applications due to errors, missing documentation, or unrealistic offers. Working with a tax resolution expert like Ben Butterfield increases your chances of success.
At BPB Tax Resolutions, we help clients determine their eligibility, prepare strong applications, and negotiate with the IRS to achieve the best possible outcome.
If you owe tax debt and are looking for relief, call (402) 779-7399 today for a free consultation.
