Settlement Review

Review IRS Offer in Compromise eligibility honestly.

An IRS Offer in Compromise can settle eligible tax debt for less than the full balance owed — but only when the math actually supports it. The IRS rejects most OICs that don't fit. The fastest way to lose time and money is to file one without an honest pre-screen of reasonable collection potential. A vetted tax professional runs the numbers first and recommends OIC, installment agreement, or hardship based on what the IRS will actually accept.

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Trusted Tax Relief is a matching service, not a law firm or CPA firm, and is not affiliated with the IRS. Eligibility and outcomes depend on the facts of each case.

How the IRS actually evaluates an Offer in Compromise

The IRS Offer in Compromise program is governed by reasonable collection potential (RCP) — the dollar amount the IRS believes it could collect from the taxpayer's assets and future income over a defined period. RCP is a formula, not a negotiation. The IRS looks at equity in bank accounts, vehicles, real estate, retirement accounts, plus a multiple of monthly disposable income (income minus IRS-allowable expenses). If the offer is at least RCP, it can be accepted. If it isn't, it is almost always rejected — no matter how sympathetic the circumstances. Honest screening before submission saves the $205 user fee, the 20% deposit, and months of waiting.

01
Pull IRS account transcripts, list all assets and accounts, and calculate reasonable collection potential under current IRS guidelines.
02
Compare RCP to the actual balance and review whether OIC, installment agreement, or Currently Not Collectible is the better path.
03
If OIC is the right fit, prepare Form 656 and Form 433-A(OIC) with complete documentation — every line of disclosure, every supporting statement.
04
Submit the offer with the user fee and required deposit, respond to IRS follow-up requests within deadlines, and stay current on all future filings during the review window.

What an unscreened OIC actually costs

Filing without screening is the expensive mistake.

Rejected offers do not just waste fees — they cost months of progress on the underlying case.

User fee and deposit at riskThe $205 application fee is generally non-refundable, and the 20% deposit applies to the balance even if the offer is rejected.
Collection statute extendsThe 10-year IRS collection statute is paused (tolled) during OIC review — a rejected offer keeps the IRS clock running longer.
Compliance trapAcceptance requires staying current on all federal filings and payments for the following five years. Default returns the original balance plus accrued interest.
Wasted timeOIC review typically takes 6-12 months. A rejected offer means starting the resolution conversation over from scratch.

What to have ready

Most recent IRS notice or balance letter (or transcript)
Asset list — bank accounts, vehicles, real property, retirement accounts
Monthly income, take-home pay, and required living expenses
Dependent and household information

How TTR Works

How we match you with the right tax firm.

Trusted Tax Relief is a matchmaker, not a tax firm. We only refer to BBB-vetted partners that focus on resolving $10K+ federal and state tax debt. No call centers, no upsells, no IRS affiliation.

01 Free intake

Share the basics about the IRS or state tax situation. Takes about three minutes and there is no obligation.

02 Vetted match

We hand-match the case to a partner firm with relevant experience for the balance, notice type, and state.

03 Resolution plan

The firm reviews options (installment, hardship, OIC, abatement) and only moves forward if it makes sense for the taxpayer.

Common questions

How likely is an Offer in Compromise to be accepted?

Acceptance depends almost entirely on reasonable collection potential. The IRS publishes acceptance rates around 30-40% in recent years, but that figure includes screened, well-prepared offers. Many cases are better resolved through installment agreement, partial-pay installment, or Currently Not Collectible.

What's required to stay in good standing after acceptance?

Filed, current, and timely-paid tax returns for five years after acceptance (or until the offer terms are met, whichever is longer). Default returns the original balance plus accrued interest, and the IRS can resume collection.

How long does an Offer in Compromise take?

Typically 6-12 months from submission to decision, longer if appeals are involved. The IRS has 24 months to decide; if no decision is reached, the offer is deemed accepted — but the IRS rarely lets that happen.

Are 'pennies on the dollar' settlements real?

Real OIC acceptances do exist and can settle balances for significantly less than owed — but only when reasonable collection potential supports it. Any firm promising a specific settlement percentage before reviewing finances is a red flag. TTR partners do honest screening first.

How much does Trusted Tax Relief cost?

The initial consultation is free. If a partner firm takes on the case, the firm sets the fee based on complexity and balance. The taxpayer reviews and approves any fee before work begins.

How does Trusted Tax Relief make money if the consultation is free?

Partner firms pay TTR a referral fee for qualified, vetted matches. That fee is paid by the firm, not the taxpayer, and does not change the firm's quoted price.

How do I know this isn't a scam?

TTR only refers to BBB-vetted firms with a track record on $10K+ federal and state tax debt. We are not the IRS, we never ask for upfront payment to the IRS, and we never promise a specific settlement amount. If anything sounds too good to be true, walk away.

Will resolving IRS tax debt hurt my credit?

An installment agreement on its own does not appear on credit reports. A federal tax lien historically did, but the three major credit bureaus stopped reporting tax liens. Resolving the underlying debt is generally better for long-term credit than ignoring it.

Ready to review IRS settlement options honestly?

Get matched with a vetted tax professional, run the numbers, and only submit an Offer in Compromise if the math supports it.

Get My Free Consultation

Trusted Tax Relief is a matching service, not a law firm or CPA firm, and is not affiliated with the IRS or any state tax agency. We do not make settlement guarantees. Eligibility, timing, and outcomes depend on the facts of each case and the IRS rules in effect. Reductions in tax liability are not common and require formal IRS review of assets, income, and required expenses. Penalties and interest continue to accrue on unpaid balances unless and until the IRS issues relief.