IRS Offer in Compromise

Timing

4–6 months (IRS review and approval)

If You Do It Yourself

To check eligibility - free, application fee - $205

Delivery

Confirmation of submission and ongoing application tracking support.

Eligibility

You may qualify for an Offer in Compromise if: You cannot pay your full tax debt due to financial hardship. Paying the full amount would cause economic distress. You are up-to-date on all required filings and payments. You do not have an active open bankruptcy case. You have a valid SSN, ITIN, or FEIN.

Victoria provides expert tax assistance, compliance support, and IRS representation for individuals and businesses across all 50 states. IRS Offer in Compromise services are tailored to each client’s financial situation and case complexity.

An initial consultation allows us to review your situation, discuss available options, and determine the most effective path forward.

Book a Consultation

Have a Question? Email Me

The consultation fee is applied toward your total service fee if you proceed with the services.

If the consultation is the only service provided, the fee remains non-refundable, as professional time, analysis, and guidance are delivered during the session.

or contact me:

DIY Step-by-Step Guide
(No agent or lawyer)

Check Your Eligibility

Use the official IRS Offer in Compromise Pre-Qualifier Tool
https://irs.treasury.gov/oic_pre_qualifier/
‍
Answer questions about income, expenses, assets, and debt. The IRS does not charge to check eligibility.

Gather Required Documentation

Collect proof of income (W-2s, 1099s, bank statements).

Gather monthly expense evidence (rent, insurance, transportation).

Obtain copies of your most recent two federal tax returns.

Complete the Official IRS Forms

Individuals
Use Form 656 and Form 433-A (OIC)
‍https://www.irs.gov/forms-pubs/about-form-656

Businesses
Use Form 433-B (OIC)
‍https://www.irs.gov/forms-pubs/about-form-433-b

Include the Required Fees and Payment

Application Fee
$205 (check or money order payable to the U.S. Treasury).

Initial Payment
Lump-Sum Offer (20% of total offer amount) plus Periodic Payment Offer (first month’s payment included with application).

Mail Your Application Package To (include all forms, supporting documents, and payments)

For Illinois residents:
IRS Centralized OIC Unit
P.O. Box 30803
Philadelphia, PA 19104-9899

Wait for Review and Respond Promptly

The IRS typically reviews offers within 4–6 months.

You may be asked to provide updated financial details or verification.

Continue making any agreed payments while your offer is under review.

Receive Decision and Next Steps

If accepted
You’ll receive a written confirmation of your settlement amount and payment terms.

If rejected

You can appeal within 30 days using Form 13711 (Request for Appeal of Offer in Compromise).

Common Mistakes People Make

Submitting an offer while missing required tax returns or still in bankruptcy.

Underreporting income or omitting assets.

Miscalculating your “reasonable collection potential” (RCP).

Failing to include the application fee and initial payment.

Ignoring IRS correspondence during review, leading to case closure.

Documents & Information Needed

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