Qualify Now Save Thousands Offer In Compromise Solution

Eligibility and Application Process

Qualifying for an Offer in Compromise requires meeting specific criteria set by the IRS. Generally, you must demonstrate that paying your full tax liability would cause financial hardship. The IRS uses a formula that considers your monthly income, allowable expenses, and asset equity to determine your reasonable collection potential (RCP). If your offer is less than the RCP, it is more likely to be accepted.

The application process involves completing Form 656, Offer in Compromise, and submitting it along with a $205 application fee and initial payment. It's crucial to ensure that all tax filings are current and that you are not in an open bankruptcy proceeding. The IRS typically takes several months to process an OIC application, so patience and thorough preparation are key.